PUBLISHED IN LONDON AND FRANKFURT
for Development | • ^ •••No.. 28,818 Wednesday July 7 1982 ***3Gp
CtMmNBVTAL SaUWG . PRICES: AUSTRIA Sch.15; BELGIUM fr». DENMARK Kr&BO; FRANCE FTB.00J GERMANY' - ONI 2.0; ITALY L 1,000: NETHERLANDS FI 2-ZS; NORWAY KrELOD; PORTUGAL Esc GO; SPAIN PQBS; SWEDEN KrG.OO; SWITZERLAND Fr ZD: EIRE 50p; MALTA 30e
#
NEWS SUMMARY
More trains run as
f
it’st***
hefc
GENERAL
Four die
as lorry
crashes
into shops
At least four people were kOJed.
when, a lorry ran «ot -of, eonirol
; along the main' street of Iron-
bridge, Shropshire and crashed
into three dups.
Eight others, indmHng two
i cMklren. were injured as the
lorry careered down a . steep hill
on the rood linking Ironbridge
1 with Telford.
The lorry knocked down
several pedestrians and collided
with vehicles.
• Teacher threat
Ministers and local authority
leaders will meet on July 19 to
discuss forecasts that more than
16.000 teachers will heed to be
dismissed if planned education
spending -.cuts are to be
achieved. Page 9
Naval ‘attack'
i Cuts in Britain’s- naval strength
% introduced .over the last year.
\ carry “ serious national risks .
Rapd are . “'unacceptable in
military terms*” said former
giief of .defence stnffi Atoaral
JMNortonL.Page 5*
rDeafih sentences V
Four mercenaries, iawita ding one
1 Briton, Bernard Carey, were
| sentenced to- death for tr ying
| to overthrow the Seychelles
, Goyemmieat. A fifth maur South
' African tateSSgenee agent
I Ifetia Doimcheck, was jaited
for ‘2ff^)peBrgi ■ .
f Airliner crashes •
{ A Soviet Aeroflot jet With about
j ',90 passengers on board crashed.
! -soon after takeoff from Mos-
1 cow. All. were thought to be *
i killodi '■ '
< Jw '*V , V
BY-PHIUP BASSETT, LABOUR CORRESPONDENT
add 5.6
. • DOLLAR was siigbf^ finner
in. fh&L and erratic tcnfisg. it
improved to ' MII2.49
: am 2.4775), fft poss
(FFr £8675), SwRc.^-121
CSwFr 2.1065) and ^£257.7
TF257.2). Its trade: weighting
rose from 12L3 to 12L&. Kage 54
• STEELING shed 75:pc£a at
$1.7225 but was up at J9E, A29
(DM 4285V F**T£L89
(FIT 11*8) and SwFr X655
CSwFr ' 3.645). Its Bank of
England index was down - at
9L2 (91.4). Page 34 . -
• EQUITIES were also higher.
The FT 30-Share Index .added.
5u6 to. 554.0. Page 33 .
• GILTS improved on interest
rate hopes. The Government
Securities index rose 0J. to
69.95. Page 33 . • •
• SUGAR priee rally continued,
with the London dafly raw
SUGAR
LONDON UNIT PRICE -
i TheBrftMh Embassy ta^Hadrfd
asked Danish. ;at£thoritae« .to
i probe dashes $>etweett Bagtifo
, soccer fans and potiee before
.i the Engiand-Spain Worid Cup
. maCdi on Mnnday,
! Protesters held
! Nine anti-aadear protesters who
painted M USS Auschwitz” on
(he hull of at Trident submarine
. . afed spljujhed at with foe*r own.
arrested in Groton,
premier jailed
former Turkish premier Bnlent
Jccevit . was . jailed for two
months 27. atoys for '’■defying a
militai7*4ecree banning former
. making public
.irtatenfleite: /■.'•
|JPIt : claim
'"Britain’s .miners are committed
. to fight for a wages and corufi-
tions package which Includes a
jf- pay demand . of more than. 30
per cent. Back Page
Curtain may fall
High fees' wanted by performers
i|. could mean the end of seaside
; . shows, . said the chairman of the
. , English Tourist Board. Michael
. ; Moptague. Page 9. Blackpool’s
I illumina tions this year will use
■’ laser beams." •
: Pub crawl offer
' Government ministers were in- T
vited on. a pub crawl by Lord.
Cfielwood who wanted them to.
" see the. /varying measures
offered . when wine is sold by
• the glass. Parliament, Page 12
■*’ *■
Briefly a - -
A FFt 209 note (£16B3) goes
into circul ation in France today.
Two died' and.' 40 were injured
when . a Train travelling . to
Lisbon derailed add' plunged
from a bridge. . ...
Police detained: three men in
Southampion tinder the Proven-
tio ft", of Terrorism Act,
Severn people -drowned 1 In'
Turkey as they took to' the
water to escape a heat wave.
CHIEF PRICE CHANGES YESTERDAY
(Prices in pence .unless otherwise
RISES: •■■■'.
Amershwn -225 4- .6
Avana /...»■'•■•<:• 308 + 10
BAT lads. 432 ■+ ® '
BpB 410 + 8
JBarratt Beys.. -276 + 8--
Beecham' 266 + \
Booker MtConuelL.. 6 T + 5
De La Bute 485 + 30
Ferranti .t....;;‘770' + T7;
GEC U...:— sji.j-;*! '
Glaxo 724 +13
Guinness -Peat 47+ 4
1mm. Bus. - Systems 135 + 10.
Kenning Motor ...... 61 + 3-
P & OJDefdi 148 + 5
Plessey -'477. + 7
P oily Peck 343 + 13 -
Reed 'Inti. 297 +_9
indicated)
Kuberoid 161
Rugby Port, Cement. 98
.Toothill (R. . W.), ... " S3
■ V. U. Textiles 30
UDS 65
United Scientific ... 380
Watson (R. K. ) i 72
Carless Cape! ...... 160
Imp.. Coin. Gas ...... 1SS
Shell Transport - ... 386
Charter Cons. : 198
Cons. Gold Fields... 357
FALLS:
B1CC 203
Land . Securities 266.
Parker-Knoll “A" ... 130
Quest Automation. .. 40.
Reardson Smith “A” 53
BRITISH RAIL ran a substan-
tially greater number of train
services yesterday ■ as more
train-drivers defied their
union’s call for an all-out strike
over flexible rostering and the
.pressure increased from drivers
for a re-examination of union
opposition to the issue.
BR estimated last night that,
after taking account of the
night-shift, it bad been able to
run about 1,400 trains. This
was nearly half as many again
as the final total of just more
than 1,000 trains on Monday,
the second full day of the
strike.
Based on a later-afternoon
count, 844 passenger -services
and 68 freight?trains had run.
The spread of services varied
from one BR region to another.
Western region continued the
worn hit, only four passenger-
trains and one freight-train
running in it by the time of the
last available- detailed count.
By contrast. Southern region,
traditionally regarded as a.
militant stronghold, ran a much
greater proportion of services.
In spite of BR's achievement"
in increasing its member of ser-
v4ces, the- Government’s
decision not to pay to BR the
Piiblic Service Obligation (PSO)
grant for this week may force
BR’s hand in pushing it to a
complete closure of the net-
work.- ...
However, the number of
trains BR' is managing, to run
is still significant as a gauge
of the readiness of ordinary
members of the Associated
Society of .Locomotive Engi-
neers and Firemen to resist the
strike-call over BR’s imposition
at 31 drivers’ depots of the
flexible work-rosters.
. Senior BR officials reported
an increase of about 30 per
cent on the 601 drivers who
turned up for work on Monday.
Final figures for yesterday will
not be available until today but
BR officials thought the number
of Aslef drivers had risen by
about 65 per cent from the final
Monday figure of 272 Aslef
drivers.
Meanwhile, 329 drivers from
the rival ' Natinoal Union of
Railwaymen, which has not
called its members out on
strike, tdrned up for work.
More significant than these
figures for individual drivers,
a small - number of Aslef
brandies, Bury, Bolton and
Harrogate, voted to return to
normal working.
BR is placing great hoipe on
.other- branches, as well as indi-
viduals, following suit. A
branch revolt would be an even
more serious problem for foe
Aslef executive than an indi-
vidual membership revolt,
because the scope for <fi9dplxn-
kig groups of branches is
limited.
These three branches, together
with those at Hull and
Soumknd, v<$iany
others. TL^fco'ntactln^.^ Aslef s
Lonckm h^JqtWfterfand seek-
ing a swift recall of the union’s
policy-making annual assembly
of delegates to re-examine the
union’s pobey on . flexible
rostering.
Aslef leaders are coosklering
this. If k reaffirmed the union's
policy of opposition it might
help to halt any further crumb-
ling of the strike. If it reversed
the policy it would at least
provide the union with an
honourable way out In any
case, a recalled assembly seems
certain to be more divided than
foe last 47-0 vote against foe
new rostering s y s te m .
In spite of the continuing
drift back to work. Sir Peter
Parker, BR* chairman, said last
night: “Wa are expecting a
long strike.”
Proclaiming himself only
mildly encouraged by foe turn-
out he said: “ There Is no way
that foe BR hoard, the manage-
ment or foe country .should
ex puect any less from us than
seeing this matter settled. And
so I am not expecting a short
strike at a£L However long it
is necessary— we must take
that.**
The Prime Minister praised
the Aslef drivers who defied the
strike-call.
Intervention ruled out, Page 10
Job fears boost Aslef militancy.
Page 10
Franks inquiry will concentrate
price rising £3 a tonne to. £116,
£21 above last ..month's three-
year low. Page 28
» GOLD fell 54-75 to *310.5 in
London^ la. New Voak fhej
^CwHX^My cRj^ WStP *309.1
(9312-5)'. Page 28 ' |
m WAJA. STI^ET was off 2-85
at 704.14 before the dose.
Page 32 . . ;; . !
•UNEMPLOYMENT will be
higher, add . wages rise more
slowly.' in Britain . than foe
average for fadusrtraMsed
countries, an' OECD ri^ort iaid.
■Bads Page; Details, Page 8
• MONEY SUPPLY growth is
on target, prompting; hopes in
money markets of lower interest
rates. Back Page
• ARGENTINA devalued the
peso by 21 per cent to a rate
of 20,000 to the dollar (34.450
to the pound) as part of a
package of economic measures.
Page 6
• PENN SQUARE Bank of,
Oklahoma City went • into
receivership.-'- Continental |
Illinois, the. sixth largest UJ5.
bank, may as a result report a
second-quarter loss. Page 29
• MR GERALD BONSON..
chairman of Heron Corporation,
property and ' service . station
group; wa^ given an £81,000 pay
rise, taking his earnings to
£288,000. Page 8
• FUJITSU of Japan intro-
duced what it says is the
world's fastest computers^ able
to . handle 500m instructions a
' second and costing - 511.7m
(£6.8m) each-
' COMPANIES
;• -INTASUN Leisure Group;
tour . operator and charter air-
line, lifted profit forth© year to
March 31 from- £1026m to
,£14.08m before tax. ; If is quoted
on the USM but hasspugbt a full
quote. Page 24 •
• FIAT, Italy’s biggest motor
company; expects a “modest"
profit V this year - of perhaps
L60bn (£25ro), confirming its
recovery from 1980’s L240bn
losses: Page 30
• GRANADA ^ROCP, . tele-
vision - and- video equipment
renter, saw pre-tax, profit slip
from £24-44m to £23-88m for
.the 28 weeks to April 10. Page
24; Lex, Back Page
on events
to invasion
BY peTBt TUDD&L, POLITICAL EDITOR
THE OFFICIAL inquiry into the
^origins the Fadfclnnds crisis
wRl- concentrate on events
leading tip td : foe Argentine
invasion of foe islands in ApriL
- A Pariiamentary written
answer ‘ from . foe- - Prime
Minister yesterday made it clear
that she .has made concessions
To foe Opposition parties on the
focus as well as on foe number
of members in foe inquiry.'- .
Mrs Thatcher confirmed that
the chairman of the committee
would be Lord Franks, foe
77-y ear-old former . academic
and diplomat, and announced
the names of the other com-
mittee members. The Tory
nominees are Lord Watkinson,
foe former Defence Minister in
the Macmillan Government and
Lord Barber, the former
Chancellor of the Exchequer.
Labour ha snominated Lord
Lever, foe ex-Gabinet Minister,
.and Mr JJferlyri Rees, former .
Home Secretary anif currently
shadow-energy spokesman.
The other member wfll be
Sir Patrick Nairne, who retired
. MRS THATCHER yesterday
damped down speculation at
Westminster about an early
general election. She told
MPs (bat she would be
“utterly amazed" if there
was an October election. This
confirms what many MPs
suspected was her instinct —
to carry on for at least
another year before calling
an election.
last year as Permanent Secre-
tary at the Department of
Health and Social Security. Sir
Patrick, who is to be made a
member of foe Privy Council,
was, ironically, private secretary
in foe late 1950s- to Lord
Carrington (who had to resign
ovri* the. Falklands affair) for
part of foe tiitie when he was
Fim Lord of the Admiralty.
Lord Franks has had a long
series of major public appoint-
ments and now sits in the Lords
as a Lfoerai peer. He was
British Ambassador to Washing-
ton during the period when the
Soviet spies Run Phifoy and
Donald Maclean served there.
The reaction at Westminster
was that the composition was
foe epitome of a safe choice of
senior establishment figures.
Mrs Thatcher told the Com-
mons that the inquiry “must be
given whatever time it needs to
complete its review but I hope
it will be able to report within
six months — and sooner If
possible."
The Prime Minister will
Continued on Back Page
Callaghan attacks Nott, Page 10
Editorial Comment, Page 22
Bonn in last-ditch moves to save AEG
BY KEVIN DONE IN FRANKFURT
-LAST-DITCH ■ moves to enable
^ the banks to grant new credits
ta AEG-TeJefunken, foe finan-
cially stricken West German
electrical group, are to be con-
sidered by the Bonn Cabinet
today. The proposal's represent
a rearguard action to stave off
foe imminent collapse of .foe
group, the thirteenth largest
industrial company in foe
Federal Republic.
Attempts by AEGTs manage-
ment and its bankers, led by
Dresdner Bank, to push through
a far-reaching restructuring
plan, could be engulfed by foe
immediate liquidity crisis.
To allow new money to be
pumped quickly into AEG, foe
Government. and -foe- banks' are
looking urgently at- two possi-
bilities:
•- The Federal Cabinet is to
consider granting guarantees to
cover specific AEG export orders
totalling up to DM 600m
(£140m). A final decision is
unlikely today, but foe Cabinet
could give a declaration of
intent
• AEG*s 24-member banking
consortium is examining the
possibility of granting DM 200m
to DM 300m in new credits
against specific collateral as
temporary liquidity relief.
As part of its overall strategy
for survival — foe blueprint
AEG-83 — the group has applied
to foe Federal Government and
several provincial states for
guarantees to cover new 1 credits
totalling DM 1.55bn.
Bonn can take no decision
on this request, however, until
the application has been closely
examined by the state-owned
auditors. Treuarbeit, who must
certify that foe rescue plan has '
a good chance of success. The
Government may not give
general loan guarantees if it is
very likely they will actually be
called.
The Treuarbeit report is not
expected for another two to
three weeks, but it is clear that
_ CONTENTS —
AECPs financial position is de-
teriorating rapidly from day-to-
day not least because of grow-
ing unease among its trading
partners.
It is understood that Bonn
could probably act more
quickly if loan guarantees were
linked specifically to certain
export orders. Hie normal
export credit 'guarantees would
be expanded to cover foe manu-
facturing risk, thus freeing ,
existing bank credits for other !
purposes.
If AEG-Telef unhen collapsed,
about 123,000 jobs would be at
risk, nearly 100,000 -of them in
the Federal Republic.
AECTs bankers discussed
whether to grant temporary
emergency credits on Monday
night. Dresdner Bank is to
clarify the legal obstacles to
such a move before foe consor-
tium meets again, probably on
Friday.
' Pipeline talks hi Moscow,
Page 2
U.S, venture capital: the silicon valley
goldrush. 22
Hungary’s economy: an East- West tight-
rope act 23
Britain’s miners: Mr ScargilTs new
; model union 23
Management:, challenge for head of new
engineering council 20
Commercial Law: “Unconscious bailee”
liable for damaged goods 19
Energy Review: electricity in
Scotland 10
Editorial comment* current cost
accounting; Falklands inquiry 22
Tedinology: French electronic
research 20
Survey: France 13-18
Anwrtan NoWs ... B
Appointment* 11
Art* 21
Base Rate* 3
Commodities 2B
Companies UK 24,26.2?
Crossword 21
Entertain. Quids ... 21
European News ... 2
Euromarkets 30
European Options 28
FT Actuaries 33
Foreign - Exchanges 34
Gold Markets - 28
Inti. Companies ... 23*31
Loader Page 22
Letters 23
Lex 38
London Options ... 28
Management 20
Men ft Matters ... 22
Mining 28 *
Money Markets ... 34
Overseas New* . A
Parliament 12
Racing 19
Share Information 38. 37
Stock Markets:
London
33
Wall Straat ...
32
... 32
Technology
20
TV and Radio ...
« 18
UK New*:
General
.. 8-10
Labour
12
Unit Trusts:
Authorised
Others 36
Weather 38
World .Trade News 8
ANNUAL STATEMENTS
Heron Carp 26
London Trust 27
Renotd 27
.Tosco Stores 24
800 Group 24
Railways
weekly
grant
withheld
By Hazel Duffy,
Transport Correspondent
The Government has decided
to withhold the £15£m grant
paid each Friday to British
Rail.
The move could force the
British Railways Board to
meet this week to decide
whether to close the entire
network in the absence of a
settlement of foe Aslef strike.
The suspension of the
grant, the Public Service
Obligation (PSO), emphasises
the Government's support for
the board in its determination
to get agreement on flexible
rostering and other produc-
tivity issues with the unions.
The PSO was paid last
Friday for the whole of last
week. In spile -of foe two-day
shutdown caused by foe
National Union of Railway-
men's strike. Now, however,
the Government has decided
that since British Rail is not
running a service as specified
in its contract with the
Government, it is not obliged
to make the payment.
The Government and the
board discussed the possi-
bility that BR might be
forced into total shutdown by
foe NUR and Aslef strikes.
The outcome was a
memorandum of understand-
ing on BR's finances in the
event of a shutdown under
which BR would be able to
borrow against its £150m
temporary borrowing limit.
In addition, fofa figure might
be regarded as flexible.
In return, BR would be
expected to show it was being
as prudent as possible in foe
management of its finances,
and would probably be
expected to hasten the sale of
assets. This would ind^g the
sale of Sealink uk, the British
end of the eross-Chaimel and
North Sea ferry services, on
which the Government re-
gards BR to have been drag-
ging its feet..-
BR went into the strike
with fairly good -cash flow,
thanks 1o foe increase In
passenger traffic at the start
of the holiday season, but
its financial situation is
. deteriorating daily. The cost
of operating even a very
limited service is substantial
when passenger revenues are
virtually nil and payments
under most freight carrying
Continued on Back Page
Reagan offers
troops to help
evacuate PLO
BY ANATOLE KALETSKY IN WASHINGTON AND
DAVID LENNON IN TEL AV7Y
FRESNDENT REAGAN offered
yesterday to send U.S. troops
into Lebanon to assist in the
evacuation of 6,000 guerrillas
of foe Palestine Liberation
Organisation encircled in Beirut
by Israeli forces.
The White House said the
deployment of up to 1.000 UR.
troops and the services of the
Sixth Fleet in assisting the
evacuation would depend on all
parties to the Lebanese con-
flict agreeing on a peace
formula.
Shortly after foe U.S. state-
ment. heavy fighting broke out
again around Beirut. The latest
ceasefire, in operation for
barely 24-hours, collapsed with
heavy Israeli shelling of
Palestinian positions on foe
southern outskirts of foe capital.
Mr Reagan's decision came
after a proposal from the
Lebanese Government for an
international peacekeeping
force to assist in “ foe orderly
and safe evacuation of armed
personnel from Beirut”
The U.S. decision was taken
on Friday night after Mr Philip
Habib, foe U.S. negotiator in
Lebanon, told foe President tbat
such an international force
could be essential to reach an
agreement on the cessation of
hostilities in Lebanon, Mr Larry
Speakes, the White House
Deputy Press Secretary said.
Mr Speakes said troops would
only be sent in the event of a
formal request from foe govern-
ment of Lebanon to assist foe
Lebanese armed forces in
evacuating PLO guerrillas.
Hie U.S. would require
assurances about the safety of
its forces and there would be
no question of deploying sueh
a force in foe southern part of
Lebanon to patrol Israels
northern border.
Israel has suggested that an 1
international peacekeeping
force would be required in
southern Lebanon as part of -a
final peace agreement to
guarantee Israel against any
further attacks from the north.
The U.S. has consistently
refused to contemplate sending
troops for this purpose. The
President's agreement to help
with the evacuation of PLO
fighters From Lebanon is
strictly limited to providing a
temporary force of no more;,
than 1,000 men for a period of^
less than 30 days. White H^usdl
officials said yesterday. at-
Accordin gto Israel Radio-.—.
which leaked news of the U.yn-
offer — foe UR. forces would oe
accompanied by up to snn
French marines and possibly
French warships.
The PLO guerrillas would
leave Beirut on ships chartered j
by foe UJS. Government
Israel Radio claimed that four
Arab countries had already
agreed to receive the guerrillas.
The majority would he taken lo ;
Algeria, with smaller groups ;
going to Syria, Iraq and possib|y
Egypt.
Israeli officials, who did not
deny (his report, said the
of Beirut were at a critical
stage, and that the next 48
hours could be crucial.
Israelis stand guard over
Beirut lifelines. Page 4
Current-cost accounting
opponents lead in poll
£ in New York
— July 2
Previous
Spot 81,7326-7550
1 month 0.41-0.44 pm
3 months 1.35-1.40 pm
12 monthsl4.S04.90 pm
81.7405-7420
0.38-0,48 pm
1.33-1.3 pm
4.72-4.85 pm
BY BARRY RILEY
OPPONENTS of current-cost
accounting are registering an
early lead in foe voting by
members of foe Institute of
Chartered ' Accountants in
England and Wales on the
resolution proposed Mr David
Keyzner and Mr Martin Haslam.
In force days of postal ballot-
ing, preceding the institute’s
special meeting on July 29,
members have cast 6,477 votes
for the motion to withdraw the
current-cost standard SSAP 16;
5.842 votes were cast against
This is a 52.5 per cent
majority for foe Keymer-
Haslam resolution. However,
another three weeks remain for
the receipt of votes.
The total 12,319 ballot-papers
received is described by insti-
tute officials as an unprece-
dentedly heavy vote It is
projected that foe eventual turn-
out will number about 30,000.
This would compare with
25,000 for the previous Keyraer*
Haslam anti-CCA resolution in
1977. At that time the part-
ners of foe Burgess Hill,
Sussex, firm forced the abandon-
ment of a previous version of
current-cost accounting. On
that occasion they won slightly
more than 50 per cent of foe
votes.
Spurred by foe early voting
returns, institute leaders are
believed to be making intense
efforts to bring out the vote
against foe Kelmer-Haslam reso-
lution.
Editorial Comemnt, Page 22
Letters. Page 23
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Tel: (0793) 26161
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I
EUROPEAN NEWS
LUXEMBOURG ACCEPTS BELGIAN ASSURANCES
Pressures on currency link ease
BY GILES MSUUTT M BRUSSHS
PRESSURE from the Luxem-
bourg Government for a
significant modification of the
Grand Duchy’s 60-year-old
monetary link with Belgium has
been, eased after talks between
the two governments in
Brussels yesterday.
A senior ministerial team led
by M Pierre Werner, the
Luxembourg Premier, is under-
stood to have accepted assur-
ances on strengthened mone-
tary co-operation from Mr
WHfried Martens, the Belgian
Prime Minister. Although
Luxembourg emphasised that it
would retain its right to float
free of the .Belgian franc, the
likelihood of such a move
appeared to have diuimished as
a result of the talks.
The signs are that Belgium
has turned down a number of
requests by Luxembourg for
a greater role in the manage-
ment of the ■ linked Belgian-
Luxembourg franc • '
The Grand Duchy’s demand
for a separate valuation of its
assets. Which have traditio nally
been held by Belgium’s central
bank, has-been countered by a
number of technical diffic ulties
and did not therefore figure
largely in the discussions.
Further work on the division
may yield results in the
autumn, but Luxembourg's
ambitions to set up a separate
monetary “Institute," enabling
it to be represented .in the
International Monetary Fund
and on the EEC monetary com-
mittee seem postponed in-
definitely.
The Luxembourg Government
is also understood to have
sought some form of exchange
rate guarantees which could
insulate the Luxembourg franc
against a further Belgian franc
devaluation.
While the Belgian Govern-
ment was prepared to give an
undertaking that there would
be no further unilateral devalua-
tions — such as last February’s
&£ per ‘cent European Monetary
System realignment which
triggered ' the present Luxem-
bourg discontent — no other
guarantees are reported to have
been made.
The basis of Belgium’s firm
hnnHUng of the currency talks
were that . the economic
austerity programme being im-
posed by tiie Martens Govern-
ment would ensure, if success-
ful, that no further strai ns a re
put on the two countries'
monetary union.
M Werner, speaking cm his
return to Luxembourg, said
that if toe measures succeed,
the Grand Duchy “would ask
nothing better than to maintain
the monetary association."
The Grand Duchy has never-
theless issued a formal warning
to Belgium that if necessary it
will be prepared to break the
monetary link.
MEPs set their sights on European union
BY JOHN WYLES M STRASBOURG
THE EUROPEAN Parliament
yesterday abandoned those,
including most EEC govern-
ments, who pay only lip service
to European integration and
struck out on its own towards
“European union." Its aim Is
to formulate a popular demand
voiced by MEPs for a
-thoroughly reformed and inte-
grated Community.
Success could create political
problems and embarrassments
for the governments. They
willed tins . directly-elected
Pa rliam ent into being in 1979.
Gan they a few years later
ignore -its analysis of the EEC’s
ailments and its prescription
that a serious revision of the
Community's treaties is needed?
This conclusion could weH. be
the result of the guidelines on
Euro pean union endorsed fay
MEPs here yesterday which are
to be applied -by the Parlia-
ment's Committee on Insti-
tutional Affairs as it frames its
detailed recommendations.
Several governments — cer-
tainly the Danish, probably the
British, possibly the .West
German — wifl want to torn a
blind eye to fills parliamentary
venture. It has, after all, a less
idealistic side, which is toe
political aggrandisement of the
Parliament itself.
MEPs are frustrated at their
lack of powers and influence,
and may want to be campaign-
ing for re-election in 1984 on
a progr a mme for bufldmg
Europe which win. incidentally,
make the Parliament’s role
something more comparable to
that of their national legis-
latures.
This development, however,
can only be at the expense of
the Council of Ministers- Yester-
day’s guidelines called for
proposals for sharing the legis-
lative and budgetary powers
between the PartLameot and the
Council. “The current pre-
dominance of the Council will
cease," they say. Instead, the
institutions would become two
separate legislative chambers,,
with file Council representing
member states and the Parlia-
ment “ the people."
The European Commission,
meanwhile, would be. trans-
formed into a genuine executive.
But these are only some of
file changes to the treaties
which file institutional com-
mittee may want the Pariaa-
ment to adopt in October or
November next year. After
yesterday’s vote, the committee
has the authority to redefine the
tasks which the Community has
set itself and its powers over
member states.
To the sceptics, who are
legion in the Anglo-Saxon areas
of the Community, fins is all
“ Eurolunacy ” divorced from
pditical reality and drawing
much less poptear support than
the evangelists pretend. Never-
theless, this parliamentary
initiative comes at a time of a
more general questioning of the
Cfcmmuufty’s priorities rele-
vance and institutional work-
ings and may not be wi t hout
influence.
Extra $500m pledge
helps ease IDA’s
budgetary problems
BY WALTER BUS IN AMSTERDAM
France agrees to raise steel export prices
BY GILES MERRITT M BRUSSELS
THE EEC avoided a serious
steel crisis on Monday when
France agreed to raise its steel
export prices in line with other
Community producers.
In an emergency pact follow-
ing weekend talks between the
French Government and Euro-
pean Commission officials, Paris
reversed its earlier refusal to
implement the 84 per cent price
rises recently agreed by the 12
major European steelmakers
grouped in the Eurofer pro-
ducers’ “ club " and which were
due to have come into effect on
July L
The agree m en t was reached
between Viscount Etienne
Davignon, the EEC Industry
Commissioner, M Jacques
Delors, the French Finance
Minister and M Jean Pierre
Chevenement, France's Industry
Minister.
While it means higher prices
for French steel exports, -French
steel produceKV domestic prices
will not rise by the FEY 1W-150 1
(up to £18) per ton which bad
been generally agreed by
Eurofer as the final third stage
of the increases aimed at boost-
ing European steel prices by 12
per cent this year.
The key element in the com-
promise between Paris and
Brussels is that Fr ench steel
companies are undertaking not
to increase their market shares
inside France as a result of
their . comparatively lower
prices:
This win ensure that other
EEC producers do not lose ex-
port business in France as a
result, although it leaves' open
the possibility that other EEC
governments might see compar-
able advantages in seeking
a similar concession.
The special conditions nego-
tiated by France reflect the
Paris .^Government's concern
that the EEC steel prices agree-
ment should not cut across its
temporary price freeze and fuel
inflation by racing industrial
costs.
It was that consideration, to-
gether with, a reluctance to sac-
rifice the advantages of its
recent 8Ji per cent devaluation
of the franc against the D-mark,
in the European Monetary Sys-
tem, which at the end of .last
week led to the French refusal
to follow the general steel price
increases.
The - Commission - was
prompted to open urgent talks
with Paris to" the threat which
France’s earner refusal to fol-
low the price rises had posed
to price stability in toe EEC
steel rfigime.
An additional concern was'
that Bonn had already begun .
to react strongly to the possi-
bility that French steelmakers
would be able to undercut West
German steel prices, with a
renewal of earlier suggestions
that it might be forced to im-
pose border levies or steel
quotas to protect its producers’
home markets.
M Davignon has beaded off a
steel prices row that could have
precipitated toe collapse of toe
.disciplines required to main-
tain order in toe EEC steel
market because -Jt .coincides
with sharply reduced consump-
tion in the EEC and. the new
U.S. measures to curb EEC ex-
ports. •' • h •.
The European Comm&stou’s
preoccupation, however, re-
mains the negotiation of a fresh
agreement with Washington
that would lift toe threat of
still tighter steel curbs, and M
Davignon is expected to open
talks with toe U.S. Government
scorn
Belgrade seeks rise in exports
BY ALBCSANDER U3L M BELGRADE
BRITAIN HAS made a larger
contribution in supporting the
beleaguered Yugoslav economy
with loans and credits than any
other West European country,
Mr Francis Pyan, the UK
Foreign Secretary, told a Press
conference at the end of a two-
day visit
His Yugoslav counterpart, Mr
Lazar Mojsov, made clear during
talks that his country was keen
to increase its exports to the UK
Last year these amounted to less
than a quarter of toe £251m in
goods it imported from Britain.
This UK-Yugoslav imbalance
may be narrowed by the import
cuts to which the Belgrade
government has generally
resorted in order to tty to dose
its current account deficit But
Mr Pym expressed hope that
more credits would be available
for Yugoslavia this year, though
he did not say whether this
might he export credits or
financial credits which Yugo-
slavia has found it hard to raise
this year.
Much of Mr pym’s talks were
taken up with East-West issues,
which he also discussed with
President Petar Stambolic, and
Prime Minister Milka Planinc.
But on his first trip outside the
U.S. and the EEC since taking
office last April, the British
foreign secretary sought to
minimise transatlantic differ-
ences over policy towards toe
Communist bloc. '
He told toe Press conference
that while Britain understood
U.S. objectives to hamper
development of the Soviet gas
pipeline to Western Europe, it
beiived the Reagan Administra-
tion should reconsider its
refusal to aHow Western Euro-
pean companies to export US.
technology to toe Soviet Union.
The trouble caused inside the
Nato aHiance by toe US. ban
was not worto It. he said.
In earlier speeches during the
visit Mr Pym and Mr Mojsov
condemned toe Israeli invasion
of Lebanon. Mr Pym said that,
although Yugoslavia bad not
taken Britain’s side in the Falk-
land war, it understood toe
.British actions bad been taken
on the principle that force
could not be used to resolve
territorial disputes. " . t
Both men hoped that East-.
West detente could he revived-
though Mr Pym said “ events in
Poland, Afghanistan and else-
where made it impossible to
develop a climate of confidence."
Lisbon bid to
keep Setenave
shipyard open
By Dona Smith In Lisbon
THE FATE of Portugal’s largest
shipbuilding yard, Setenave,
south of Lisbon, is to be nego-
tiated by a special Government
commission.
The yard, established by pri-
vate interests in toe early 1970s,
and nationalised in toe revolu-
tionary seizure of major assets
in 1975, has lost Esc 10-Tbn
(£7 3m) since 1976. Successive
governments have pumped
Esc 7bn into the yard, in an
effort to try to save it
The Balsemao Government is
bent on finding a workable
means of easing the state’s
.burden without shutting ' toe
yard down. Some 6,000 jobs
are at stake, and the Govern-
ment is none too popular with
labour.
Tick?
Talk:
Brand-new production and office
space from about £1.50 a sq.ft
Rent-free periods available.
22% Regional Development Grant
if I want to build
Further cash assistance on fixed
capital assets and new plant
Low-interest European loans for
up to 50% of cost, of fixed capital
assets.
First class labour force.
Grant assistance for office arid
service industries.
lb the Chief Executive Officer, The
Guildhall, Wrexham LL11 lffiT, Clwyd,
North Wales, or Bob Dutton, Des Jones or
Heini Przibram at Wrexham (0978)
364611.
Please send me your brochure and
cassette showing why expanding
industries in Wrexham have invested
over £100 millions in the Borough.
Name
Address
Company.
mdxhaJi
Britain's moft
cgn ta l ■
Evelopment
I SPECI AL PE
A
Sr Suarez ... threat to
leave UGD
Spanish
party chief
tries to halt
defections
By Robert Graham hi Madrid
A DESPERATE bid is being
made by Sr Leopolds Cairo
Sotelo, toe Spanish Prime
Minister, to prevent his
ruling Union de Centro
Democratic^ (UCD) party
disintegrating. But with new
desertions from toe Christian
Democrat and Liberal factions,
it is only likely to hold
together in slimmer form.
There have been constant meet-
ings in the past six days
between toe faction leaders.
With the approach of the
s umm er holidays there is a
feeling in the party that it
must reach quickly a defini-
tive solution to its debilitat-
ing internal divisions. Only
in this way can toe UCD offer
a credible image to the elec-
torate increasingly expecting
a general election in toe
autumn.
The main negotiations have
been carried out by Sr Calvo
Sotelo, Sr Adolfo Suarez, the
former Premier, and Sr
Landelino . La villa, the
Speaker of Paritament
Two basic problems need to be
resolved— the party’s elec-
toral image and control of
the party apparatus.
The UCD, created from more
than 13 Roupings to fight the
first democratic general elec-
tion in June 1977, has never
been more than a coalition of
alliances held together by a
desire to stay in power.
The party’s, ideology ranges
from left-of-centre . Social
. Democrats and. .liberals to
right-wing- Conservatives and
former Franco bureaucrats.
After more than five years in
power, personal conflicts and
contradicting ideology have
come increasingly to the fore.
With toe prospect of an elec-
tion in the autumn, these
factions are considering
whether ft is best to remain
inside the party or leav
■ either to form new groupings
' or ally directly with the
Socialist Party on the left or
AEanza Popular on the right.
In December the bulk of the
Social Democrats kL Parlia-
ment left the UCD under Sr
Francisco Fernandez Ordonez,
the former Justice Minister.
Others have since gone their
own way, cutting the party
majority from 165 to 149.
This week, the Liberals have
begun to leave and Sr Oscav
Alzaga, a leading figure
among the conservative
Christian Democrats, has
decided to defect to Alianza
Popular.
UCD’s direct vote in Parlia-
ment could soon be cut to 129
out of 350 seats.
The Liberals believe the party
is taking an irreversible turn
to the right, preparing the
ground for an alliance with
Alianza Popular, headed by
Sr Manuel Fraga, a former
Franco minister. The Liberals
will formally constitute a
party next week.
The right in the UCD, on toe
other hand, believes the party
will not subscribe to the idea
of an alliance with Alianza
Popular to form “ the natural
majority."
With these desertions taken
more or less for granted, the
fight is on for toe control of
the rest of the UCD. Sr
Calvo Sotelo is trying hard
to preserve it intact. To do
this he appears willing to
make many concessions.
The main ones are being de-
manded by Sr Suarez who
was forced to resign the party
leadership in January 1981.
He is insisting on control of
the party apparatus — some-
thing he and his former sup-
porters conceded only last
autumn. Otherwise, he Is
threatening to leave with
some 40 MPs and toe
allegiance of most of the
party's regional bosses.
Sr Calvo Sotelo has reportedly
gone as far as he is willing
by offering to stand down
from the party leadership in
favour of Sr La villa after less
than nine months there.
Sr Suarez is playing hard on
the fact that polls show he
is the UCD’s best electoral
asset. Opposing him are a
group of former Franco
bureaucrats, headed by Sr
Rodolfo Martin Villa, the
Deputy Premier. They are
using this squabble as a
means to take control of the
party.
The fight reflects little credit on
the party and is likely to
alienate the electorate fur-
ther. One unpublished
opinion poll reportedly gives
UCD only 5 per cent of the
vote.
ACUTE BUDGETARY prob-
lems affecting the operations of
the International Development
Association (IDA) for the 1983
fiscal year just beginning could,
be alleviated partly by a deri-
sion of 11 donor countries to
contribute an extra 8500m,
While the promise of this sum
has been warmly welcomed by
the IDA^ however, there is still
anxiety over toe attitude of the
U.S., by far the largest contri-
butor. which "owes " $950m for
1983 and has so far paid noth-
ing. Planned spending for the
year was $4.4bn. but even with
tbe U.S. contribution, income
for the year is expected to be
onlv $3.3bn.
The crisis could have a
serious effect on aid flows to
tbe least developed countries—
many of them .in Africa— end
to India, which - accounts for
40 per cent of IDA loans. The
IDA, toe soft loans division of
toe World Bank, is their main
lifeline at present, providing
interest-free loans with a 10-
year grace period and a 50-year
maturity.
At a meeting in Hie Hague
this week of 25 of the most
important donor countries,
Washington confirmed that it
was not willing to contribute
its 1983 allocation until it had
seen toe extent .of -the- commit-
ment of other countries to the
1984-87 period. The Reagan
Administration, in any case, has
had problems In getting even
its theoretical contribution
through Congress. It may well
end up paying only 3700m. as
ft did for 1982, thus adding
substantially to toe existing
shortfall.
West Germany, France and
Italy have adopted a similar line
over their contributions, while
Britain, though apparently In
favour of an .early disburse-
ment, has yet to take a formal
•derision. •
The U-S. contributes 27 per
cent of toe IDA’s total budget,
rising to 31 per cent when
account is taken of the rising
value of the dollar, and is a
vital catalyst in the reaction of
European donors. Its theoretical
contribution for the period
between 1981 and 1983 is
53-2bn.
At the end of the meeting
in The Hague yesterday, Mr
Hooen Quereschi. senior vice-
president of toe World Bank
in charge of IDA operations,
said he was “ extremely satis-
fied” at toe outcome, despite
the UJS; attitude. Brazil. Saudi
Arabia, Sweden, Norway, Den-
mark, Finland, Iceland, the
Netherlands, Austria, Yugo-
slavia and South Korea had all
agreed to release, their frill
1983 allocations, and toe Saudis
and toe Dutch were ready to
pay up immediately.
A recent French suggestion
proposed setting up a special
fund for 1983, which would be
outside the IDA’s normal
budget., and would contain the
balance of contributions from
other donors than the U.S„
tied to exports ■ from those
countries. The idea is still
under consideration, -but toe
association itself is not 100 per
cent in favour, in case it should
set a precedent and add to
administrative costs. Officials
see the idea as a damage limita-
tion device and would prefer an
arrangement witoah the context
of normal provisions.
Poland eases law on
foreign capital investment
BY CHRlSlOmai BOBINSKI <N WARSAW
POLAND’S Parliament yester-
day passed a law liberalising
toe regulations under which
foreign capital could be
invested in small-scale busi-
nesses.
Under the regulations, which
have been in existence for five
years, foreign nationals could
start businesses in toe country.
- From the end of. 1981, there
were 154 smaft businesses em-
ploying 3,100. people with a'-
turnover, of ' Zloties . . 3.1bn
(£20m) and with exports worth
£1m.
Mr Lon gin Cegielshi, present-
ing the draft law for approval;
said that the number of com-
panies was expected to double
by the end of tbe year.
Hie legislation permits
foreigners to transfer profits in
hard currency abroad to the
annual value of 10 per cent of
toe sum. Inv ested in the enter-
prise and 50 per cent of export
ea rning s over import: costs.
- Mr Aioyzy Melich. a deputy,
said that tbe legislation brought
no risk of toe return of
capitalism and implied that
Karl Marx would have
approved.
The explanation - was neces-
sary as the Bill is regarded
with suspicion by -the dogmatic
wing of toe establishment and
more legislation is due in the
autumn, allowing greater par-
ticipation by foreign capital in
toe Polish economy.
Meanwhile, Mr Edmund
Osmanczyk, another deputy,
spoke in favour of liberalising
travel regulations and sup-
ported Mr Romuald Bukowski
for his speech cm Monday
urging an end to martial law. .
Pay curbs blamed for low
productivity in industry
BY OUR WARSAW CORRESPONDENT
THE POLISH Government's
■policy of restraining wage
increases is contribcsting to low
productivity in industry and
means that output is being held
back by labour shortages even
in those sectors where raw
materials and machinery ale
available.
This argument which ffies in
the face of toe policy being con-
ducted by toe .Finance Ministry
and tbe banks has been put for-
ward in a leading article in toe
treat issue of Zycie
GospodSrcze, toe . Polish
economic weekly.
The Government has been
att em p tin g to balance supply
and demand by cinfaing toe
growth of incomes. According
to unofficial estimates, tins aim
was achieved last month for tbe
first time when incomes
balanced the supply of goods
and services.
However, the Government said
last week that there are plans
to tackle toe most acute prob-
lems by raising: pensions and
m inim u m wages, but that tins
will not solve all the difficulties.
. Zycie Gospodarcze. admits
that the main barrier- to a
recovery of industrial produc-
tion is the lack of hard currency
credits for imports of raw
materials and semi-finished
products. But it adds that out-
put of consumer goods is being
restrained by the flow of labour
away from badly paid jobs, low
worker motivation »nd 'taxes
which penalise a growth in
employment
# Tbe Government has not
attempted to tamper with
Western food and medical aid
to Poland ter its own political
purposes, the senior aid coordi-
nator for toe Polish Roman
Catholic Church assured repre-
sentatives of British charities in
London yesterday, writes David
Buchan. '
Bishop Czeslaw Domin of
Katowice said that 100 per cent
of the Western aid sent qia the
Chart h, bad reached the' needy
in Poland for whom it was
intended.
W. German
‘Greens’
given more
support
By Jonathan Carr In Bonn
“THE GREENS." toe West
German movement of ecologists
and. peace protesters, now Ms
more national support than the
liberal Free Democratic party
in the Bonn coalition Govern-
ment thanks not least to its
growing attraction for the
young. , .
This emerges from an opinion
poll at a time when the Social
Democrats (SPD) - senior
partner in the Bonn coalition
—are flirting increasingly with
the idea of some form of co-
operation with tbe Greens.
According to toe poll taken
by the respected Ailensoacn
Institute last mouth, 7.7 per cent
of West German voters would
support the Greens in a general
election (against 5.8 per cent a
year earlier) . Only 6.8 per cent
would vote for the Free Demo-
crats (FDP)i compared with
10.1 per cent before.
These results are still well
below those achieved by toe
large political parties. -The
SPD was just over 31 per cent
of the vote, according to Allens-
bach, and toe Christian Demo-
crat&Chiistian Social Union, 53
per cent
Further regional differences
among the Greens indicate that
the movement might split into
disputing factions if it tried to
fight a national election
cmapalgn.
Nonetheless, toe presence of
toe Greens— under slightly
different names— in five
regional parliaments, ana the
support now revealed- bv
Allensbach, show that a new 4
third force has arrived on the >
West German political scene.
This is disturbing above
for the FDP (the third foi
until now), but the SPD
cause to worry, too.
opinion poll shows an
ing number of. young
(aged 18-29) turning to
Greens from the Social pemeft^r K
crats over the past twO\ years.
In early 1980. 52 per cent of
voters in this age group said
they would support the SPD, 4
and 10 per cent toe Greens. In
toe poll last month. 30 per cent
spoke out for the SPD. and 21
per cent for the Greens.
' The Social Democrats insist
they plan no formal coalition
with toe Greens, but in toe city-
state of Hamburg they ate al-
ready being pressed into an
accommodation with them. This
is' because the SPD failed to
gain an absolute majority in
last month's Hamburg elections,
tbe FDP gained no seats — but
toe Greens won nine.
Moscow talks
on future of
gas pipeline
- By Anthony Robinson,
East Earopo Correspondent
SOVIET Gas Ministry officials
yesterday discussed toe future
of the Siberia-West Europe gas
pipeline with representatives of
AEG-Telefunken and Masses-
mann, the main West German
contractors for the supply of
gas turbines, and tubes and
ancillary equipment.
The talks are the latest in a
series of negotiations over the
past week following President
Ronald Reagan’s decision to
extend toe ban on UJS. tech-
nology exports to the subsidi-
aries or licensees of U.S.
corporations.
Representatives from John
Brown, Creusot-Loire, and
lUsthom-AtJ antique have already
discussed the problems which
have arisen, as have two senior
West German bankers involved
in toe financial aspects of toe
complex gas-for-equipment deal.
A team from toe Italian tur-
bine supplier Nuovo Pignone
also arrived in Moscow for
technical talks.
But toe most fragile link in
the chain now appears to be ■.
AEG which has lost more than ,
8800m (£470m) over the past ■
two years and whose ability to
fulfil its $280m contract to
supply turbines appears to
depend as much on survivability
of the company as on toe com-
plications caused by President
Reagan.
Irish insurer claims Minister
damaged company’s standing
BY BRENDAN KEENAN' IN. COBUN
THE IRISH Republic’s largest
car insurer, the Private
Motorists’ Protection Asso-
ciation. has called for . toe
resignation of' Mr Desmond
O’Malley; Minister for .Trade
and Commerce.
Company executives are also
considering whether to ate toe
Minister for alleged damage to
tile company’s standing:
The row arose over newspaper
allegations that Mr O’Malley
called a meeting of other insur-
ance companies and discussed
toe position -if tbe PMPA —
Which insures more than half
of Ireland’s private motorists —
was to fail.
The company is angry thaf
Mr O’Malley has not denied toe ,
allegations and is orijvpartiy
mollified by a statement at the
beginning «f toe week that toe
PMPA accounts for toe year
ended December 31. 1981 had
been received by the Ministry
and showed thaf it bad met its
obligations and made a- profit.
The PMPA believes toe
ermnany has been damaged by
these events. A spokesman
. said they were, in a business
where thev were . sensitive to
rumour, but it was too early to
py if there had been any actual
loss of business, • -
The PMPA grew up as a
reaction to toe fact that 80 per
cent of toe Irish Republic's car
msurance business was held by
British companies. . It is largely
the creation of Mr Joe Moore,
its chairman.
However, the company has a
disadvantage in that over 90
per cent of its business is in
motor, insurance where - it is
™"C!AL , TlMES ‘ p W h,i ®h*d <hKy
swnjft Sundays and holidays. U.8
subscription rates $385.00 par annum.'
5““ , *L 5* 1 " P°«* «• , P»W at Naw
York, N,Y„ and M sddftlcnzt mailin’!
cantres, ' ■
notoriously difficult to make an
underwriting' profit
The company has diversified,
but some of its subsidiaries,
such, as a Sunday newspaper and
a farm machinery business, have
had to be jetisoned because of
HtPA insists that its financial
position is sound, but toe row
with the Minister comes as
otter companies have been
making efforts to lure its prime
curtomers, by ag e or profession,
with discounts on car Insurance.
7 1982
OECD ECONOMIC OUTLOOK
Growth in output
to prevent loss of
GROWTH OF REAL GNP IN OECD AREA
(36 changes from previous period, seasonally adjusted at annual rates)
Average
1*70
to
1981
11 -
•’•h. !
■ ... j I
*.: c ■'
v ; v.
' -•-.■c'f't
!•* E
rts*.
MAX Wl!jqN50tl EGONOMC* , .
TffiE -G RA VE jmtioofc tor jofca od, *dd-
and the uncertain; proepecta of tag; ."it . wxdd seem that a
a really substantia} revival' of range of stirnotwal factors base
investment are the nwta ttiemes been imp ort ant in various
of the Organisation tar Econo- countries, taduffing n&ai&cs&t
mic Co-o-perattoai. ^aad-Bwefto^- and -
ment’s Economic Cuttack pub-. bmty ■ ta JafiSor pcwtact
lished today. • markets.;- th«:. eoergaace .of
it says Ihat the average major jrnBflmnfe s in the sharer
gowth of output expected tx of a^s^e ffiedtae. end a
OECD countries—* per cent shift jm*-. the tax totfofea- ta
thas year and 2* per cent next. csn^loy^eatsuQd iuvesttieat”
yeaMS uniSkdy to he htah ;■
enough to iwewe^ iiompfic^- : facade- a,
meat from continuing to rise.
fcl- “ie3R ^ is8! - 7 * S5ft?«iwK S,™
per cen t ofto e OECD coon-fees’ i >-perceiveff need for
iah wg for ce' wa s MM flttptoyed. ~ jnjohSg y ■ on* the ’ part* of
The joggauaatioa ays this could -- SS5S " . ™
rise to 9 per cent. reprasMting “ ;■* ' '
32m people by the first M lf of ‘ A.--' second Important'-- factor
1983; Jh Europe, the rats cooM relatively raptft tacr ease
be 10* per cent. ... -na wages and noa^wa^fehojir
|e ! .perceived heed -•. for.
7- on* the ' part* of
!m people by the first twftf of 1 A*econd important" fia ctor
»3r Jh Europe, the rate coaid ® the relatively rapt*tecrease
a 10} per cart. . l r xn wages and non-w^ labour
The report says the proMem' IW^y^ifeto
of unemployment In the TJJ5. - * Susta ined; redtottomfe- profit
meant to be largely * cv**ra3 *? xe * i TOX py - W 11 ??**-
:• ... y
*' i* *•
appears to be largely e cydKcsi *■*”* - ™®®y ' <J ^2r aL
phenomejion. vtosreas 5a i&«f _>yy^caHy^r._lhose^^les,
Baropqm countries; to eri*krf.'' to P 0Ur ' mflembrS!ty : «&d_ a
, n '!i t
‘l» i<- ,t ■ rl ‘ ’■ b» . {
■■ ••"* . L-
,f ' .;.
. u„- . V-r. •
'!»• : ■
' ' l D'.-fr
European countries; to'tyttoi ' *P ,ur t50St - mflexxbrti'ty yfrd a
increase -seems to be superim- on profits fcavefafened
pose d on a rising imri q n fyfcn gr employmeot. •-;• . ..
‘ • Xt says there has als^been
The-roasons for' ibis -pro- concern in many : wfetries
greeted detertosoftfon are- not about the increasing aH&e of
national income acootmted for
by government spending. Where
efforts have been made to curb
public spending, there has been
a tendency for public invest-
ment to. be cut back.
'The pattern of adaptation to
the .two sharp rises in oil
prices— in 1973 and 1979— has
shown some substantial evidence
of flexibility In the market
economies, however.
. ■ 41 Compared with 1973, OECD
economies on average now use
about 16 per cent less energy
per unit of GNP (output) and
about 26 per cent less oil” By
oontrast, energy consumption
per. unit of output in the
centrally planned economies
has declined by less than 5 per
cent in the decade, to 1980; -
Despite this evidence of
adaptation, however, the report
says there is concern- about
whether the developed
economies can. mount the
accelerated programme of pro-
ductive investment which will
be needed to replace plant
which has been made perman-
ently obsolete by the higher oil
-prices.
US.
Japan
W. German/ .,
Fernet
Britain •'
'Italy' '.
Canada
Total of above
Other OECD countries
Total OECD
Major four European countries
Total OECD less US.
Industrial prod u ctions
. Major seven countries
.-Total OECD ■
total
mo
ZL6
3.0
—03
-3}
13 J
4A
13
ii
1IL8
Z3
09
: 1
.8^
- • A6 :
IS
2}
6JP.V
1.9
13
. T
. sa
3.1
2i
23
AO
-08 •
. r-ll
83.1
. 33
0.1
-f
lt9
ii
1.0
n
lQOuO
33
tL3 ■
-i
au
29
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11
'
3 JO
-OS
-4}
— "
3j0
-os .
-3}
UK real wages set
to rise more slowly
than average in 1983
BY ROBIN PAULEY
‘ “ Stepping np the rate of
investment in an essentially
market orientated economy is
not, however, straightforward.”
One of the main difficulties is
that businesses tend to increase
investment when they expect
higher demand. With demand
depressed, traditional policies
would have sought to reduce
under-utilisation of - labour and
equipment and so stimulate
further investment.
“Such an approach is Dot
beins pursued, mainly out of
conviction that a significant part
of any stimulus ' to demand
would increase public sector
deficits and dissipate itself
rather quickly as an increase in'
inflation, thereby proving in-
effective in. lifting output in a
sustainable way.”-
The Organisation says that
partly as a result of resistant
inflation rates . and high real
interest rates, “investment has
so far* shown little sign of the
pick-up that is needed for re-
covery to be self-sustaining.”
*0ECD Economic Outlook
number 32, July 2932. Subscrip-
tion 822.50, £9.50, FFr 95. from
2, rue Andri Pascal, 75775 Paris
Cedax 16, Prance.
Wider public
sector deficits
expected
By David Marsh
flVT • "T" \
r =-p’l- . f
^ • '• tr-; l
Unemployment is forecast to increase fiuther in Britain
0Y-HOMN PAULEY
' 1 fbr. s
; ! r
,: x--r r
pa* s’- •
»*■“ r.^5f-
• - W : J
•• 'i - :- *PT'-
'T :r r -.
itl
.ill"
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>• 3> :
1» i* ;•
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1 1 r-.l
prr',. ;
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t .T !’ -
;- 1 4
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• : ■■ pr-
!*ir •
■■ ST-i. 12. i
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• '--TH
• 2 ? ;•
rst? r
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’ eif •
p : ;•
*■' * ii ■is
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■ 1 , S\T-
■ :: •
11 v- l
UNEMPLOYMENT WILL' con-
tinue to rise in Britain through-
out 1982 and 1983. By the end
of next year Britain wfll have
had the highest level of un-
employment for three consecu-
tive years of the seven maSti
OECD states— U.SL, Japan; West
Germany’, France, UK, Italy and *
. Canada, r '
"The tarecast is for 12 per
rent unemployment an Britain
in 19£2 and 12J25 per cent in
,1983, against 7 10.6 per cent in
|ISS1. Tbis corupares witfrOEGD '
SSurope- floras : W- and
*f0.5 pe^4!fent%'‘I9&fl982 and
198^T^F»ectibeiy ahd ^^fe over-
all OECD averages off "7^ 8w5
and*9 per cent The undsaplDy-
ment level In Japan forecast
to remaiii stable at ardufitf2.25
per cent ^ throughout .thif year
and next -.. ’
_ Labour market. . conqilions
have deteriorated 'consistently
since 1980 and, by to second
half of last; year, employment
was falling, ii v about tworiiurds
was falKn^-ln about two^Mrds
of OECD stateS. But tfi^Tabour
force cohtlmied to grow at about
1 'per cent 'per annum, leading
unempiojTnent rates up in every
OECD country except Japan.
Employment fell so quickly in
Earope that labour productivity
-continued tb rise, an unusual
occurrence during a recession.
And in France, Britain, Ireland
and 'to Netherlands produc-
tivity grew faster in 1981 than
in 1980 despite lower growth or
an actual fill in GDP.
The report -. singles out
Britain's labour productivity
performance as being " particu-
larly noteworthy ” because
employment fell In 1981 by
nearly 5 per cent— nearly twice
the fall in GDP. The cumulative
fgll • in European employment
from the 1979 peak may exceed
2 per cent (3m people) by tbe
end of this- year. Including a
‘record decline of 9 per cent in
Britain.
The proportion of long-term
unemployed continues to rise.
In Britain, 52 per cent of the
unemployed in early 1982 had
been out -of work for more than
six months compared with 39
per cent a year earlier. In the
U.S., the number of long-term
. unemployed climbed from 11
per cent in 1980 to 17 per cent
in 1981.
Declining OECD employment
may ten out to have gathered
momentum in the first half of
1982 and this could continue
throughout to year in spite
of GDP growth. The only bright
note is that, on tbe basis of pro-
jected output. European em-
ployment should start to rise
in 1983 along with the rest of
the OECD region.
The OECD is particularly
gloomy about youth unemploy-
ment in the seven main coun-
tries. where the rate is forecast
to reach 17J5 per cent this year
and 18.25 per cent next year.
OVERALL PUBLIC sector
deficits in the main indus-
trialised countries are
expected to worsen In 1982
and 1983 as sluggish economic
growth raises government-
spending and depresses tax
receipts, the OECD says.
Tbe general government
financial balance for the
seven largest countries Is
expected to be in deficit to
the tune of 33 per cent of
GNP both this year and next
compared with 2.7 per cent in
1981 and 2.5 per cent in 1980.*
The general government
balance . includes central,
local and state governments
and social security funds.
The main factor behind this
trend is the Urge increase in
the U.S. budget deficit, which
is expected to- rise — on a
national accounts basis — from
$58bn in fiscal 1981 to $135bn
in fiscal 1982 and $156bn in
fiscal 1983, substantially above
official intentions. In West
Germany, Britain and Japan,
some progress towards lower-
deficits is expected in 1982
and 1983.
REAL WAGE Incomes in
Britain are set to rise more
slowly in 1982 and 1983 than
the OECD average while pro-
ductivity. Improvements in ihc
same years will be among the
.best of the 19 countries.
■ The OECD's detailed forecasts
show that real wage incomes
rose by 2.6 per cent in the UK
in 1981 but are expected to rise
by only 0.25 per cent this year
and 0.5 per cent next against an
.OECD average of 1.3 per cent in
1981 and forecasts of 1.25 per
cent for both this and next year.
•Real wage incomes are
expected to fall in both years
in Belgium and this year in
Ireland, Norway and Sweden.
Real labour costs in Britain
are expected to continue to rise
at a slower rate with 1.5 per
cent forecast for 1982 and 0.75
per cent in 1983 compared with
1.5 per cent and 1.25 per cent
for the OECD average.
Britain has one of the best
productivity forecasts. After a
rise of 2.7 per cent in 1981 the
report predicts increases of 3.75
per cent in 1982 and 2.25 per
cent in 1983 compared with the
OECD average of 1.1 per cent
in 1981 followed by 1.25 per
cent in 1982 and 2 per cent in
1983.
This means Britain's pro-
ductivity forecasts are better
for this year and next, taken
together, .than those in the U.S..
Japan, West Germany and
France, although Germany has
a very high forecast of 3.25 per
cent for 1983 alone.
Hourly earnings in manufac-
turing are forecast to rise more
slowly than th e OECD average
rate for the first time in 1983
when a rate of 7.75 per. cent is
forecast for Britain against 8
per cent for the OECD and 9.5
per cent for OECD Europe. - -
But the U.S.', Japan and West
Germany all have figures sub-
stantially below Britain's- in
both 1982 and 19S3. although
France’s arc way above — almnst
double m 19S3 at 14 per eent.
There were indications that
wage behaviour in many
countries had become more
responsive to labour market
conditions and the financial pos-
itions of companies.
In some countries there was
a consensus that reai-wa.ae
moderation was needed to
moderate domestic inflation: i:i
others there may he a growing
awareness of the link between
real labour costs and medium-
term employment prospects.
■ If the decree of wage moder-
ation since 1979 could be
sustained nr consolidated, they
could help to reduce OECT>
inflation rates to near those pre-
vailing before the first nil crisis
in 1974.
The shift towards more frac-
menlod wage negotiations tn
accommodate local nr specific
company conditions has become
increasingly important, particu-
larly in the U.S.
Recent .settlements involving
large, high-wage trade unioiyt
in depressed U.S. industriefr-r
airlines, automobiles, meat 1
packing, rubber and trucking —
have -resulted in major pay
concessions by unions in return
for greater assurances about job
security and/or profit sharing.
A similar trend is apparent
in the UK. the report says. ;
where greater emphasis has ■
been placed on negotiations at
tbe plant nr company level.
Consumer pnee inflation is
projected to fall to 7.5 per cent
in the OECD area bv~the second !
quarter of 1983. The projection !
for Britain is below this figure
at fi.75 per cent.
Foreign, trade achieving a Bonn sees
degree of overall ' stability chance to
BY ROHN PAULEY
. *»• •:* ■ •:ir I
:mv talk ■,
ituroof |
lijn'line \
0 * Km!’ -" w-n. i
* e.:r ■.i.H'-ifKt f
1- V - '■*' f
W:
■». • !
,.'-U
A MEASURE of overall
stability in foreign trade and
current balances is expected in
. to OECD area this year and
next; in . marked contrast to
recent years, altboagh consider-
able changes might occur to the
balances of individual countries.
•Outside the OECD, howeyer,-
Cbejticture is less^siaMe. ppec’s
current balance is considered
to have - continued its rapid ■
deterioration in to . first half
of 1982 and could be dose to
balance it* :1983.: The rising
cost and reduced availability
of foreigi credit may result In
an eventual fall in the com-
bined deficit of non-on develop-
ing countries.
The growth of total OECD
export volumes to non-OECD
countries may already have
started to decline and future
growth, could be . relatively
modest Many non-OEGD .states
may try to restrain tbe growth
GOVERNMENT OF THE
. . STATE OF GOIAS
y . .■:• <,,4- 1
\ , • ' . * \
8ANEAMBVTO DE GOIAS S JL
— "SANEAQO
_ BIDDING NOTICE
INTERNATIONAL PUBUC BID
' Wo. 08/82 SAAIEAGO
„ :V
■/' - i
Sanaanwnto do GalAi' S,A.—
SANE AGO -invito* nW tanrostad coro-
of ffiefr external deficits because
of external . fjn»nrf»g con-
straints. ..
OECD trade prices- in local
'Currency terms ^are expected to
rise by 5-6 per cent this year
and next, compared with an an-
. nual rate ^of growth of 12 per
cent fn tbe three yearn to 1981*
.Teflqctfr the : difgct Add- in- '
..direct effects of* tor recession.' .
These? volume; -!iahd price
to vadent s ^mpfy a -$15bn year-
on-year tall in tile OECD aggre-
gate current defirif in 1982. A
deterioration in the real foreign
balance as activity picks up,
combined with a projected de-
terioration on invisible account,
could more -ton offset mildly
favourable terms of trade -de-
velopments. This would. 'cause
the aggregate current account
deficit to widen further to about -
a $20bn annual rate from the
middle of 1982 onwards.- •
The U.S. is projected to swing
from large sorgtas ixit 1982 to
deficit by 1983 and to; large
UK surplus of 1981 could be
halved to £8-25bn this year and
remain- fairty stable thereafter.
France, Italy, and Canada may
register substantial deficits each
year. Japan is expected to. in-
crese its surplus substantially in.
1982 and In 1983, and West
Germany is also expected to in-
crease Its. surplus throughout
the next 18 months.
rout critics
By Jonathan Carr in Bonn
S nlu to participate in BID No. 06/
loc ttm supply of. muarials and
equipfliantrfor the expansion of the
Water Supply System ol the City
ot Go tin la. Capital or the State of
G Did e- Brazil.
.The financial -resources lor payment
of the charges rMuItms from the
BID will be provided by the National
Housing. Bank— BNH. by the.
Government , of the State of Goias
iter
ling
through the -Water and Sewer
Financing fund — FAE-GO, and by a
Loan taken by .BNH from the Inter-
national Reconstruction and
Development ■ Bank— IRDB. The con-
tract providing for BNH end FAE-CFO
to participate In the object at -the
Bid is CTN No. 0701/79 (GoifiniaV
Project), entered into between BNH
and Banco do Eatado da Gaits on
Beptamber IB. . 1979.
Specified below are the tote of.
mate riels ~and equipment of the BID
aod the amount of tho Bid Bond for
_ each Lot: . -
Lots: I- Specification: Cast-Iron
pipes. Bid Bond: CrfSfUO.OOft . II.-.
Coat-iron porta, CrSW.QC®: Cim-
inon pipes and parts, CiSIOT.000:
tV, Steel pipes- end ■ parts.
C ($100,000: V. valves, dampers, sir
vents, etc.. C 35, 000 .
The BID t* open to Brasilierr com-
panies . and" to-. companies irom
other IRDB raembar countries, from
Swltaeriand end Taiwan.
The maximum- periods -for lha
delivery of the supplies era: Lota -
i and lls- ISO-, (<me. hu ? dri u.
fifty) consecutive days: Let III: 60
(sixty) eonMcutlve day»; Lot IV:
120 rone hundred and twenty) con-
aseutfve days: Lot V: BQ Inmaty)
consacutlve days.
- The most conspicuous change
in competitiveness is in theUiS.
where the strength of tbe dollar
sin<^ 1980; is projected- ro lead
: (on the assumption of stable ex-
change rates) to a 20 per cent
decline in competitiveness by
1983. ' The cumulative loss of
-market share's and of ‘import
penetration could amount to
more than $86bn at 1980 prices.
The UK is also projected to be
a serious loser because of ex-
change rate induced' competitive
effects.
THE BONN Government seems
bound to pounce on to
OECD’s highly positive pro-
. jections for tbe West German
economy next year, as asunu-
■ nitibn against its domestic
■ .critics. '
1983, federal budget being
passetf tty the Cabinet today
has been -widely attacked on
the grounds that it is based
on an over-optimistic assump-
tion of 3 per cent real growth
in GNP.
The political opposition as well
as several economic experts
have been arguing that
growth will be markedly
lower, the state deficit higher
and government borrowing
bigger than estimated. -
However, the OECD actually
■ projects 3.25 per cent real
growth in the German eco-
nomy in 1983' (after a real
1 per cent this year) along
with a 3 per cent rise in
consumer prices — the lowest
in the OECD area.
It also believes that a German
current account surplus this
year to $2-25bn (£1.3bu) will
about double . next year
to $4.75bn, thanks to a 1983
visible trade surplus of
$34.75bn.
If the latter figure were
achieved, it would be tbe
-biggest trade surplus in West
German history.
It is recognised in Bonn that
a very big 'question mark
hangs over the timing of the
economic upswing, and that
almost everything Trill have
to go right if the OECD’s
projections are to be fulfilled.
Tbe OECD see; real GNP in
West Germany increasing by
2 per cent in the second half
of this year and by 3.5 per
. cent in the first half of 1983.
Vfe have more managers per customer than the other main
High Street banks. That, in our view, is the way it should be, and
that’s the way we aim to keep it. It gives us distinct advantages
over other banks which new customers are quick to recognise;
particularly business customers, for whom it is supremely - •
important to have ready access to their local branch m anagement
at all times. And at all places. Our managers make apoirit of
visiting customers on their own ground as often as possible, to
make sure they have a really thorough appreciation of each
particular business and the kind.of financial problems and
opportunities that can be anticipated. -
And the time spent with our management can be that much
more valuable, too, because the tightly-knit way we’re structured
means that our managers in their turn have ready access to all our
top banking specialists, who are always ready to attend meetings,
give on-tbe-spot advice, and when necessary make on-the-spot
derisions.
It all adds up to a whole newapproach to banking, a
refreshing change from tbe land of branch management lethargy
that is so often generated by ponderous pomposity at the top.
So if you see your bank manager once in ablue moon,don’t
wait for the next blue moon, come and see us. We welcome
dissatisfied customers.
7 . : BASE LENDING RATES
. AJ3-N. Bank: 12J%. Grfndlays Bank
-..Aftied ir&i Bank 12 } % ■ Guinness Mahon
Amro Bank ;.I.in 12}% ■ Hambros Bank
Henry Ansbacber 12} % Hargrave Secs. :
Arbutoot Latham ... 13}% Heritable & Gen
Henry Ansbacber 12}%
Arbutoot Latham 13}%
Associates- Cap. Corp. 13 %
Banco de Bilbao -. 12}%
BCCI 12}%
12}%
BafiK of 12}%
Bank Leuml (UK) .pic 12}%
Bank of Cyprus 12}%
Bank Street Seta-Ltd. 13}%
Bank of-'KBJrf 2£.C. 12}%
Grfndlays Bank ...412}%
Guinness Mabon 12}%
Hambros Bank 12}%
Hargrave Secs. Ltd. ... 12}%
Heritable & Gen. Trust 12}%
Hill Samuel §12*%
C. Hoare & Co tl2}%
Hongkong & Shanghai 12}%
Kingsnorth Trust Ltd. 14 %
Knowsley & Co. Ltd. ... 13 %
Lloyds Bank 12}%
Matiinhall Limited ... 12}%
Edward Hanson A Co. 13}%
Midland Bank 12}%
'If you i
htt
■Mm
'1
Banque Beige Ltd:. ... 12}% .■ Samuel Montagu 12} %
Tho BID- documents, ncludbuj the
■pplicsble conditions, ora avniiBbiB
for contultsi'am end' pwchus at
iho Voimaoont Bid dir, a CommiMloa
at the head office of SANEAGO. at
Avenlda "B." No. 57D. Sotor.Jittnm
Goifia, GoiSnie. The ddetunents may
ho .-purchased iffaln** preeentalion
or the ' racstot tor payment to the
Treasury of SANEAGO,- at its heed
office, of enrolment fee of
rrSLOTO (three thousand auMlrex)-
per Lot. , from- June 9 «. July 23.
1982,- front’ ft.00 to 11 . 00 . am and
from 2.00 lo 4.IJQ pm.
The b’idff «« to be Jtonded -in lit
room No. .305. *t thf^hasd office- of
SANEAGO, on July ^ at. 3.00
nm. at • public ntdsn before the
PeTmanaot Bidding Comnvsalon m
SANEAGO. -
r
. * - <■ I
Banque du Rhone et de
la Tandse SA. ...... 13 %
Barclays Bank ......... 12} %
' Beneficial Trust Ltd! *.. 13}%
Bremar Holdings-* -Ltd. 13}%
Brit Bank of Mid. East 12}%
■ Brown Shipley ...i-.. 13 %
-Canada Perm’t-Trtist..-. l3 %
Castle Court Trust Ltd. 13 %
-Cavendish G’ty T’st Ltd. 14 %
■ -Cayaer Ltd ‘ ' 12}%
Cedar Holdings 13 %
■ Charterhouse Japhet... 12}%
Choulartoas 13 %
Morgan Grenfell 12} %
National Westminster 12}%
Norwich General Trust 12} %
P. S. Refson & Co.-...-..'. 12}%
Roxburgh e Guarantee 13 %
Slavenburg’s Bank 12}%
Standard. Chartered „.||12}%
Trade Dev. Bank 12}%
Trustee Savings Bank 12}%
TCB 12}%
United Bank, of Kuwait 12}%
Volkskas Inti. Ltd 12}%
Whi teaway Laidlaw ... 13 %
Williams ^ Glyn’a 12}%
It's colled A Topical Look at Small Businesses
and it's the latest title in the special series of booklets
produced by our Business Information Service.
t 'Ids designed lo provide small bumness proprietors
with ideas on how to. become more efficient, maximize
profits and reduce tax liabilities, and includes useful
information about Government schemes, enterprise
zones, counselling organizations and special bank
facilities, together with general advice on the
day-today rumting-of a business’
FOR A FREE COPY CALL IN AT ANY
WILLIAMS* GLYVS BRANCH, OR SIMPLY
POST THE FREEPOST COUPON BELOW.
Citibank, -Savings |12j% : .Wintrii5t Secs. Ltd- ... 12}%
Clydesdale Bank 13}% „ Yorkshire Bank -12}%
C. E/ Coates 13}% g Members of the Accepting Houses
Comzn. Bk,-of Near East 12}% , Committee,
Consolidated; Credits... 131% * 7-dsy deposits a.Sf. i- month
. tibUnia, JOna 8. 1S82
. * («9.dl
EnB- Jefio Giilmarfiaa da Barraa
Taohnical Dfraetor
Seari:
/s«d) End. Job* Ubafdo Tafaa
Diraowr PraaWant •
C, E.; Coates 13}%
Comm. Bk,-of Near East 12} %
Consolidated; Credits... 12}%
Co-operative Bank *12}%
Corinthian jSe.es* 11... 12}%
* Ibe Cyprus Popuiar'Bk. 12}%
Duncan Lawrie 12}%
Eagll Trust 12}%
■ E.T. Ttast 12}%
Exeter Trust Ltd. 13}%
“ 9.75%.- .Short ierm £8.000/12
month 12.1%,
t 7-day daposfn an sums of: under
£10.000 S>,%. £10.000 up To
EEO.OOQ .1fA>%, £50.000 and ever
11*- . .
Call deposits . £1.000 and over
SP**'.
First Nat. 'Fin: Qorp.... 15 % ■! 21 -day daposit*. over ri.ooo 10 * 1 %';
First . Nat' Sere, Ltd-... 15 % 3 Demand, deposit* B>»%.
Robert-. Riser 13 % -e Mortgaga -baas rata.
Financial Times Wednesday July 7 19S2
OVERSEAS NEWS
Hong Kong
corruption
probe ends
By Robert Cottrell in Hong Kong
V
THE HONG KONG Govern-
ment’s independent commission
against corruption has con-
cluded a five-month investiga-
tion into the affairs of Mr
Uisdein Mclnnes who resigned
as the colony’s commissioner of
securities last October.
Mr Mclnnes was arrested In
February this year and balled
In his own recognisance. He
lias been on bail since then and
has had to surrender his pass-
port, though he has not yet been
charged.
The basis for his arrest was
Hong Kong’s prevention of
bribery ordinance, which sanc-
tions the investigation of public
servants apparently enjoying a
standard of living above that
comensurate with their official
emoluments.
The file compiled by com-
mission invsti gators will now be
passed on to Hong Kong’s
Attorney General, Mr John
Griffiths, whose offie will decide
whether there are grounds for a
prosecution.
The commission, established
Is. 1974, answers directly to
Hoag Kong’s governor and en-
joys wide-ranging powers to
combat corruption. These
powers include arrest without
warrant detention of suspects
for up to 48 boors and authori-
-sation to examine bank accounts
and safe-deposit boxes.
- A controversial aspect of the
commission's investigation o£
Mr Mclnnes has been its de-
cision to disclose his identity in
an official statement following
person arrested and bailed at
the same time as Mr Mclnnes
has officially remained anony-
mous. The commission refused
to comment yesterday on
whether investigation of the
other person had also been con-
cluded.
Mr Mclnnes cited “personal
grounds ’’ as the reason for his
resignation from the post of
securities commissioner last
year.
Strike by 22,000 S.Afriean
white mineworkers averted
BY BSU4ARD SIMON IN JOHANNS BURG
A STRIKE! by 23,000 white
South African mineworkers was
averted yesterday when mining
houses and militant 'trade
unions agreed on a compromise
settlement to their wage
dispute.
The Chamber of Mines and
the unions agreed on a 12 per
cent wage increase as well as a
R200 (£105) bonus to compen-
sate workers for the late iniple-
mentatioa of this year’s wage
award.
The unions had originally
demanded 15 per cent, while
employers were not prepared to
go higher than an offer of 9 per
cent The increase applies to
gold and. coal mines.- .
As a result of the settlement
the strike ballot called by the
unions for today has been can-
celled. There is little doubt that
had the ballot gone ahead, most
white miners would have voted
in favour of a strike, the first
'legal work stoppage on South
Africa’s mines.
Although she unions agreed
to a lower increase than they
initially demanded, the settle-
ment is a dear defeat for the
mining houses who had insisted,
that neither they nor the
national economy could afford a
double-digit wage increase. The
13 per cent rise will cost them
about R2Sm a year.
As a result of the higher
offer,- white miners will now
receive an increase this year
only marginally less than that
of black workers, thus ending
more than a decade of substan-
tially higher wage awards (In
percentage terms) to blacks.
Black mineworkers’ wages
are, on average, one-fifth of
those paid to their white
colleagues.
However, blacks do not have
the advantage of aggressive
trade unions to negotiate on
their behaH. 'Their pay in-
creases are decided solely by
employers.
The mining companies’ deci-
sion to compromise appears to
have been influenced by the
intervention last week of Mr
. F. W. De Klerk. Minister of
Mineral and Energy Affairs,
who urged both employers and
unions to settde their differences
in the interests of South Africa'
Mr Johan Liebenberg. the
chandler's labour adviser, said
yesterday that employers had
initiated fresh negotiations with
the unions after receiving the
Minister's message.
Meanwhile, almost 100 black
miners were arrested yesterday
after a wildcat stoppage at the
Venterspost gold mine at
Weston aria, west of Johannes-
burg.
Venterspost is the third mine
managed by Gold Fields of
South Africa at which unrest
among black workers has been
reported in the past five days.
Cabinet reshuffle for Pretoria
BY BERNARD SIMON IN JOHANNESBURG
THE TRANSVAAL leader of
South Africa’s ruling National
Party, Mr F. W. De Klerk, has
been promoted in an extensive
Cabinet reshuffle announced by
Prime Minister P. W. Botha
yesterday.
Mr De Klerk, 46, at present
minister of mineral and energy
affairs, is to take over the
internal affairs portfolio, a key
political post which includes
administration of the coloured
(mixed race) and Indian com-
munities. censorship laws and
race classification.
Mr De Klerk js frequently
mentioned as a possible future
Prime Minister.
The present internal affairs
minister, Mr Chris Heunis. who
Is a confidant of the Prime
Minister and one of his most
influential supporters, has been
moved to the new portfolio of
constitutional development
He will be responsible for
implementing the recent pro-
posals of the President's
council, which aim to give
limited political powers to
coloureds and Asians.
Mr De Klerk took over' the
reins of the National Party in
the Transvaal last March after
the defection of Dr Andries
Treurnieht, now leader of the
ultra-right wing Conservative
Party.
The only minister dropped
from the cabinet In the latest
reshuffle is Mr Hendrik Smit,
minister of posts and telecom-
munications.
Mr Smit raised a storm two _
years ago by referring to blacks „
as “ Slow, think ers." ,
Chris Heunis . . . influential
supporter of the PM takes the
new jmifollo of constitutional
development _
ALLIED IRISH BANKS
REPORT ON A
DIFFICULT YEAR.
Summary of Group Results
. 1981 - ..
1982
/ IR£m
i
/ IR£m ‘
52.9
Profit before tax
59.4
39.3
/
Profit after tax
38.5
PENCE
PENCE
35.4
Earnings per share
29.8
8.0
7
Dividend per share
8.5
/ IRftn
/
/ IR£m
294.8
Capital employed .
361.7 .
4492.2 -
)
Total assets .-
5105:9
Extracts from the Statement by Niiall Crowley, Chairman of the Board.
Significant
Developments
--Diversification
through investment in
1 -
Results
-Pretax profit
increased by 12%.
-Profit after tax and
levies declined by 2%. insurance and
-Levies amounted to shipping.
. £9.3m.
-Current cost profit
£28.5m before tax,
£7.5m after tax.
Mr, Niall Crowley, Chairman.
— Further expansion
internationally.
-$100m raised by way
of floating rate notes.
Role of the Banks.
- Key role of the banks in the economy often overlooked.
— Banking levies an attack on pivotal sector of the economy. .
— ATB supporting productive sectors of the economy in difficult times.
Annual General Meeting at Group Headquarters Bahkcentre,
Ballsbridge, Dublin 4 on Tues. 13th July 1982 at 12 o’clock noon.
For copies of Report and Accounts and Chairman’s Statement write to
the Secretary, Allied Irish Banks Ltd. P.O. Box 452, Bankcentre,
Dublin 4.
ied IrishBanks Ltd.
Banking fora betterfuture
L
Unease over
Australian
Labour plan
for uranium
By Michael Thompson-Mod m
Sydney
GROWING nervousness in
the Australian Government
. over opposition Labour Party
plans to damp down on
uranium exports if It came
to power surfaced last night
when Mr Doug Anthony, the
Deputy Prime Minister
warned that Labour policy
could “shatter" ties with
Australia's allies and trading
partners.
He was speaking on the
eve of 'today’s debate on
uranium policy at the Labour
Party’s . national conference
in Canberra.
Mr Anthony, who is also
the Minister for Trade and
resources, urged Labour to
jettison its declared policy of
rejecting all existing uranium
contracts should it gain office.
The Labour leader, Mr Bill
Hayden, has also worked
feverishly t» press for an end
to Labour’s hard-line uranium
policy. Together with party
moderates, he is seeking a
new draft policy that would
remove the controversial
repudiation clause, but
toughen proposals on safety.
But he is under pressure
from left-wingers.
Reported Australian mine
production of uranium oxide
last year was 3,373 tonnes,
almost double that of 1980.
Mr Anthony said in
Canberra last night that
present Labour policy ' ox
uranium was based on
u primitive ignorance and
fear.”
The Deputy Prime Minister
said Australia's safeguards
were as stringent as those
anywhere. He said It was
clear Australia had an
obligation to supply uranium
to the rest of the world, and
said the Labour Party's
credentials would he worth-
less unless it revised its
policy and supported the
uranium industry.
Mr Yasser Arafat, leader of the PLO, examines Israeli explo-
sives during a morale boosting tour of West Beirut yesterday.
Israelis stand guard
over Beirut’s lifelines
Fighting flares on
Golf warfront
Fighting has flared up again
on the southern front of
the battlefield between Iraq
and Iran. Heavy artillery
were reported by
both sides yesterday around
the towns of Khorramshahr,
Basra and Abadan on the
disputed Shaft al-Arab water-
way, our foreign staff writes.
The 1 new fighting follows the
announcement by Iraq last
month of a unilateral cease-
fire. Iraq also said then it was
pulling Its troops out of the
remaining Iranian territory it
had captured during the 22
months of fighting after a
series of Iranian victories in
the Gulf war.
BEIRUT — Three Israeli
soldiers with .automatic rifles,
sleeping bags and food cookers
stood guard yesterday in the
control room of the power
station where a flick of the
switch could restore electricity
to west Beiruti
Soldiers were also seen in
the control room of east
Beirut's Karantina electricity
distribution centre, which
regulates the power flow to
Palestinian-controlled west
Beiruti
West Beirut, the last hold-out
of Yasser Arafat and his Pales-
tine Liberation Organisation,
has been without electricity
and running, water since
Sunday afternoon and running
water since Monday.
Lebanon’s Minister of Hydro-
electric Resources. Mahmoud
Amm ar. said: “I want to con-
firm it was the Israelis and no
one else who did this. They did
it by force. We are telling the
truth. If the Israelis say they
-have not shut down power, they
are lying.”
Mahmoud Ammar, a Shiite
Moslem known for his anti-PLO
views, said he had filed a com-
plaint -with the Lebanese
foreign ministry, which he said
was relaying it to the United
Nations and to UJS. Presiden-
tial envoy Philip Habib, who is
in Beirut as & key intermediary
Ammar and Musb^h Natbur,
the electricity company’s direc-
tor general, said Israeli soldiers
entered the Karan tina power
control station on Sunday and
ordered Lebanese workers to
throw the switches that blacked
out west Beirut
At the pumping station that
controls the gravity-fuelled
flow of watet down the hill to
A British Member of
Parliament who spent
Monday in. East eBirut said
Christians and Moslems
. whom he met there . had
criticised Israel for not
Invading the Lebanon “ but
for taking so long about it”
Mr Greville Jaxuter,
Labour MP for Leicester
NW and president of the
Board of Deputies of British
Jews, also claimed that press
reports of growing Israeli
opposition to the war in
Lebanon were exaggerated.
He said the departure of
Mr Yasser Arafat from
Being was “ inevitable " and
that rt would be welcomed
by the “vast majority of
people ” in Lebanon and
Israel.
west Beirut, Ammar said
Israeli soldiers shut off the
valves that channelled water
to the Moslem half of the city.
He said it happened on Monday
afternoon,
“Israeli soldiers arrived at
the Ashrafiyeh water station
and forced their way into the
pumps. They shut the valves
and dismantled the wheel, then
hauled the wheel away. It is
like the key and the Israelis
have it” Ammar said.
An Israeli military spokes-
man in Lebanon yesterday aban-
doned his previous denials that
west Beirut had been blacked
out.
Col Paul Kedar, an Israeli
army spokesman, said his denial
of Monday “no longer applies
... we are in a fluid situation.”
But he refused to confirm that
Israelis were responsible for
the power cut
Michael Holman in Luanda on the negotiators’ groundwork
A charter for Namibia talks
PRACTICAL proposals to
demonstrate the impartiality of
the UN as supervisor of a cease-
fire and elections in Namibia
(South West Africa), and to
finalise the number and com-
position of a UN military force
in the territory, have been put
forward by the five-nation
Western contact group seeking
to negotiate a settlement in the
territory.
Informal talks were due to
begin in New York yesterday to
finalise details of the settlement
process, on the basis of a docu-
ment circulated . by senior
officials of the Western five —
the U.S., Britain, France,
Canada and West Germany —
on a visit to southern Africa
last month.
The three-page document is
headed “summary of paints
presented by contact group mis-
sion, June 1982.” It begins
with an optimistic assessment
of the prospects for the Namibia
settlement negotiations now in
their fifth year:
SI Opportunity for rapid com-
w pletidh ■ of nepotiations:-
Recent meetings with the par-
ties concerned have shown a
will to move ahead rapidly on
the negotiations for Namibian
independence. The possibility
exists for implementation of
UN Security Council Resolution
435 to begin within a few
months and elections to be held
by March or April 1983.
” Constitutional principles: The
contact group new believes that
the constitutional principles,
with the exception of the elec-
toral system, can now be con-
sidered settled. The contact
group will report to the UN
Secretary General that the prin-
ciples have been accepted, with
the exception of the electoral
system, which should he settled
In accordance with the provi-
sions of Resolution 435.
The previous proposal of a
mixed electoral system will not
be pursued" further.
“ The UN Transitional Assis-
tance Group (UNTAG): Resolu-
tion 435 and the UN plan
remain intact, including the
authorised upper limit of 7,500
for the military component of
UNTAG. Hie UN secretariat
most be consulted and satisfied
on ■ all matters relating to
UNTAG.
There is a need to resolve
deployment levels. Success In
working out satisfactory
arrangements will depend on
some adjustments being made
in carrying out UNTAG’s tasks.
The most important adjust-
ment, on which concurrence is
needed, is the concept of
UNTAG monitoring of the re-
striction of armed Swapo per-
sonnel to base in Angola or
Zambia, given thatJJNTAG will
be monitoring the restriction of
South African- Defence Force
(SADF) forces to .base in
Namibia.
Monitoring in Angola and
Zambia would permit the
elimination of the demilitarised
zone (DMZ). The elimination
of the DMZ would in turn per-
mit some reductions in the size
(and cost) of the operation,
without impairing UNTAG’s
ability to perform its assigned
functions.
There is merit in establish-
ing, under the -auspices of the
UN special representative and
the Untag military commander,
a mechanism for liaison be-
tween the commanders of the
various military forces to deal
with reports erf alleged ; cease-
fire violations.
Impartiality: We believe the
impartiality problem can. ~ be
dealt with in the following
mann er ;
• A Security Council reaffir-
mation of impartiality rather
than a specific UN General
Assembly resolution.
• An understanding between
the five, Swapo, the Front line
states (in Son them Africa) and
South Africa that UN activities
'which run contrary to -Resolu-
tion 435 should not continue.
• .Restriction of the number
of speakers at tie Security
Council meeting held to
authorise imptementatlon of
Resolution 435 and at the
General Assembly session held
to authorise the funding of
Untag. This understanding
should include the point that
no participant in the elections
should speak.
A valuable opportunity now
exists to achieve a settlement
which would resolve other long-
standing problems of the region
at present hindering the
development of the climate of
security and mutual confidence
necessary for a Namibia settle-
ment
These issues do not fall under
Resolution 435 nor are they part
of the mandate of the five. But
the governments of the five In-
dividually share "Hie view that
action on these problems would
do much to advance and facili-
tate a settlement . of Namibia
within the time, frame we
envisage and would be worth-
while in itself in bringing peace
and contributing to economic
development in the area.
Next Steps : Agreement is
needed on how to proceed
rapidly to resolve the outstand-
ing issues related to implemen-
tation of Resolution 435. This
could be done by the five pre-
senting detailed papers on the
above issues.
Alternatively, if there is
agreement in principle on the
Ideas proposed above, there
could he talks in New York, or
another agreed place, among
representatives of the parties
concerned and the UN Secre-
tariat designed to reach final
Conclusion: Speedy informal
reactions would be most help-
ful in 'maintaining the
momentum.
' Particularly important are:
• Concurrence in 'principle
with the concept of monitoring
of Swapo bases in Angola, and
Zambia. .
• Yqut reaction to ouf ideas
on how to follow up these con-
sultations quickly in order to
resolve the outstanding ques-
tions- related to implementation'
of Resolution 435. 0^
Since the document was -.cir-
culated, it is understood that
Swapo, Angola and Zambia
have agreed lo the Western pro-
posals for monitoring Swapo
guerrilla bases in those
countries.
Mr Hidipo Hamutenya,
Swapo’s Secretary for Informa-
tion attending the New.. York
talks, also confirmed (fiat the
impartiality formula is -accept-
able while South Africa is no
longer insisting on repeal of
the UN General Assembly
resolution which recognises;
Swapo as “ sole authentic repre-
sentative” of the .people of
Namibia.
He also said that South
Africa had dropped its demand
that- the Western contact group
should provide the Untag
troops. For its part, Swapo
wants to exclude both contact
group and front-line states’ per-
sonnel from the military con-
tingent, so they can -provide
“ diplomatic and political back-
stopping.”
Australia
splashes
out on pools
at home
By Michael Tbomp*on-Nod In
Sydney
FLY IN to Sydney's Mascot
Airport and you descend over
the vast chlorinated reaches
of the city’s western
sn herbs — chlorinated, because
almost no major city in the
world, other than Los
Angeles, boasts so many
swimming pools.
From the air, it seems that
almost every garden in every
crowded suburb hosts its own
dlnkuxn swimming pool, a
testament to the fart that the
Australian swimming pool
market has escaped the
. full Impact of the
recession. It Is not nearly as
depressed as the Australian
construction business gener-
ally, which has seen home-
building approvals so far this
year reach a seven-year low.
and which is having to con-
tend with the cost of the
industry's newly . introduced
38-hour week.
In' the next 12 months, the
construction industry is du£
to tackle projects worth more
than A$13bn (CT.&ttm),
though according to the latest
calculations, the additional
cost of the 33-hour week
could be as high as A3 1.05 bn
annually. Also, the building
trades unions have already
indicated that they intend to
press for a 36-hour week.
But swimming pool manu-
facturers wffl probably be
cushioned from this as the
i«iain impact of shorter work-
ing hours is likely to be felt
In the commercial construc-
tion field. In the housing
sector, the effect is likely to
be subdued, for most new
homes are built by self-
employed subcontractors who
do not adhere strictly to the
. building trades* award.
Certainly there Is little _
anguish in the swimming pool
sector, though in Sydney this
year, home-owners are likely
to install about 4,500 pools,
against 6,000 to 7,006 nor-
mally. The* market Is more
buoyant in Melbourne, prob-
ably because house prices,
and thus mortgages, are lower
than in Sydney.
It is a crowded sector. The
swimming pool' section of the
Sydney Yellow Pages covers
several thousand enterprises
engaged in pool excavation
and design, construction, re-
conditioning, cleaning, main-
tenance and heating.
The market leader is
Mutual Pools, which has. sub-
sidiaries in New South Wales
and Victoria— Sydney and
Melbourne bring the two
main markets. In the past 20
years. Mutual has installed,
more than. 21,000 pools. At
present. Mutual is building
and installing a little under
100 pools a month.
The . marketing Is quintes-
sential ly Australian. The
. pools have names like Bine
Lagoon. Mountain Lake,
Boomerang and BUUbong.
The Billabong; for example,
alms to re-create a bnshland
setting complete with man-
made rocky outcrop and
cascading waterfall, a
patented concept developed
by Mutual whose natural look
and style, the company claims,
“will be the appearance of
swimming pools into the 21st
century.”
Mutual operates In the
middle and upper market
segments. Its prices range
from A$7,500 to AS50.000
(£4,400 to £29400), with an
average of A$10,500. It em-
ploys 300 people, and is
turning over A3 12m a year In
domestic swimming pools
alone.
The pool makers are con-
stantly Improving their
methods of construction, how-
ever, so that for around
Afl, 000, customers can now
buy a fully automatic system
that self-filters, self-beats,
self-deans and seU-chlorin-
ates — indeed, according to
one industry official, it almost
whistles “La Bohfeme.”
Although the upward
Australian Interest rate spiral
has slackened slightly, the
recession in the home-build-
ing industry continues to show
in official figures. The savings
banks and. building societies
are calling for full deregula-
tion of Interest rates, as
recommended by the Camp-
bell Committee inquiry into
the Australian financial sys-
tem.
In Sydney and elsewhere,
bousing developers have
taken to offering sweeteners,
such as low-cost bridging
loans. Many of the new two-
bedroom apartments being
built within five miles of
Sydney's central business
district cost a minimum of
A$120,000 with one-bedroom
units starting at A$90,000.
Even before the present rise
In interest- rates, an AI70.000
home loan was costing about
- A|SI5 (£430) a month.
For Mutual and Its com-
petitors, however, there is
some comfort In the fact that
residential property owners
have made huge capital gains
in the past four- years.
As long as Interest rates
remain steady, or even show
a fall, there could soon be a
pick-up in home-building; and
an even stronger splashing in
the home pool sector. In
normal times, pool huildera
can rely on a total Australian
market of about 18,000 units
annually, which la neariv a
fifth h largo as Its UJS.
counterpart.
\f
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6
AMERICAN NEWS
financial i unes Vv ednestiay July .7. 1982
Argentina devalues
peso by 21% in
reflation package
BY JIMMY BURNS IN BUENOS AIRES
ARGENTINA YESTEDAY an-
•iouae«d a 21 per cent devalua-
tion of its currency, the peso,
as part of a package of measures
aimed at reactivating a crisis
tom-economy, and soothing
political and social pressures.
Initial reaction from the
opposition parties remained
muted as the Economy Ministry
held back from immediately
detailing salary increases. Across
the hoard Increases of over
SO per cent have been widely
predicted.
A two-tier exchange rati?
policy dropped by the formet
government of Gen Leopoldo
Galtieri last December, has
been resurrected. Commercial
rate, used for physical trade
transactions and therefore of
great importance to Argentine
business was officially pegged
at 20,000 pesos to tbe dollar,
compared with last Friday's
closing quotation of 15,750
pesos.
On Monday. banks and
exchange houses were tempor-
arily closed in anticipation of
the move. They reopened
yesterday in an atmosphere of
considerable confusion, given
the initial absence of an official
quotation for the financial rate
which applies Lo small investors
and tourism.
Exchange houses received
phone calls from the Central
Bank telling them that the
financial rate could be set at
about 25,000 pesos to the
dollar.
However by yesterday after-
noon, they were bolding hack
from full trading, as they
waited for official confirmation
that the current ban on the
buying of dollars bad been
lifted.
BY KIM RJAD IN CARACAS
DR LUIS HERRERA C AMPINS.
Venezuelan President, will
name a national commission
this week to advise the Govern-
ment on tbe forthcoming
negotiations with Guayan on
Venezuela's claims to two-thirds
of Guyanese territory.
During a Venezuelan inde-
pendence day address yesterday.
Dr Herrera said his Govern-
Government hesitation in lift-
ing exchange controls steins
from fears of panic-buying of
dollars in expectation of a
steep rise in inflation, which it
is thought could be as high as
400 per cent by the end of the
year.
The Central Bank also wants
to avoid intervening in the
markets at a time when its
reserves are dangerously low.
Previewing the new measures,
in a nationwide broadcast on
Monday night. Sr Jose Maria
Dagino Pastore described
Argentina’s current economic
crisis as a “ national emer-
gency.”
In what amounted to a signifi-
cant distancing from previous
administrations. Sr Pastore
blamed tree-market policies for
the bankruptcy of industry and
rising unemployment.
Much as expected the new
measures include a refinancing
scheme for domestic Industry,
a lowering of interest rates and
a ienmhehing of terms of bank
deposits.
9 Sisns that Argentina may
he ado-ptintr a more pragmatic
approach to foreign policy, in
spite of previous threats that
the Falfclands war might force
it to break with the West,
emerged yesterday.
In a letter to President
Ronald Reagan, the new Argen-
tine leader Gen Rinaldo Biq-
none said that a normalisation
of relations with the U.S. was
a " desirable objective” and
asked Washington to lift its
sanctions against Buenos Aires.
On Monday, the new Foreign
Minister, Sr Juan Ramon
Aguirre Lanari. said he con-
sidered a " de facto cessation
of hostilities ” in the South
Atlantic had been .achieved.
ment would seek a negotiated
settlement of the claims which
date back to the 19th century.
Dr Herrera also defended his
foreign policy and indicated
that Venezuela was seriously
contemplating joining the
movement of non-aligned
nations as an active member.
It has observer status at the
moment.
Mare jobs
in services
than U.S.
industry
By Anatole Kalebky in
Wa shin gton
EMPLOYMENT in service
industries rose above employ-
ment In production in April
this year for the first time in
U.S. economic history, accord-
ing to statistics published by
the Labour Department
Finance, insurance, real
estate and service industries
employed 24Jm people In
April, compared with 24.0m
In manufacturing, mining and
construction.
Other sectors. Including
wholesale and retail trade,
utilities. transport and
government, employed 4L6m.
Despite the recession, which
has caused steep falls in
manufacturing and construc-
tion employment, many con-
sumer and service industries
have continued to Increase
their workforces throughout
the past year.
Health care has produced
the highest growth In job
opportunities for most of the
past 10 years. Between April
Iasi year and April this year,
health care employment in-
creased by 235.000 (4.3 per
cent) to 5.7m.
Other smaller service In-
dustries have grown even
more rapidly In percentage
terms. Legal services In-
creased by 32.700 (5.8 per
cent) to 552.000 and account-
ing rose bv 19.000 (5.4 per
ccn»t to 358,000 In the year
to April.
Genera! business services
and finance experienced much
slower growth rates of 1.5 per
cent and 0.8 per cent respec-
tively.
Production Industries have
declined rapidly while the
service industries have
expanded. Over the year to
April, manufacturing employ-
ment fell by Llm (5.5 per
cent) and cons traction was
down by 287.000 (9.2 per
cent).
The Bureau of Labour
Statistics said that while the
sharp declines were dne to
the recession, the general
trend to labour saving invest-
ment In manufacturing would
ensure that the relative
decline in productive employ-
ment continues after the
recession.
Caracas seeks settlement
W illiam Chislett examines the plight of a poor Central American, democracy
Crucial year for desperate Honduras
i
j THE economic plight of
1 Honduras, the poorest demo-
j cracy in the Western hemis-
j phere, is now so desperate that
the millions of boxes of bananas
| shipped abroad by the Central
j American republic no longer
! provide the income to meet the
j country’s external debt pay-
I meets.
Last year, bananas, the
I country's main export, earned
: 3215m (£124m)— one-quarter of
! total exports — interest and
! principal payments on the
I Sl.-zbn debt were 5220m- This
j year, thanks to low world com-
I modily prices and high inter-
i national interest rates, the gap
! will be much wader,
j The new Centrist government
; of President . Robert Suazo
; Cordova, the first freely elected
; civilian government in 10 years,
! took office in January. Since
; then, it has embarked on a
! delicate path of cutting public
I expenditure, raising prices and
' pushing the economy deeper
> into recession in the hope of
j preventing economic collapse.
! Last month Honduras negotiated
| an 18 months’ standby credit
i with the International Monetary
: Fund for up to SlaOm. It is
I possible that the debt will have
| to be rescheduled.
The stakes of parsing mone-
| tarist policies in Honduras are
high. Tbe country has an
annual per capita income of
5565, the lowest after Haiti. It
is bordered by El Salvador and
Guatemala, two countries
experiencing violent revolution,
and by Nicaragua, where the
revolutionaries are in power.
Honduras is the eye of the
political hurricane sweeping
through Central America and.
like the eye of a hurricane, the
country is at present remark-
ably calm. There are fears, how-
ever, that the Government's
economic policy could erode
social peace: Government
advisers admit this is a crucial
year.
Zero growth meant last year’s
per capita income fell by 3 per
cent The sight of children
sleeping curled up in doorways
in Tegucigalpa is Increasingly
common. “ It is like watching
a Greek tragedy." said an inter-
national economist.
The Government, however,
has no option but to tighten
the country’s belt. Low world
prices for its commodity
exports, the crushing burden of
high oil prices and high Inter-
national interest rates, large
outflows of capital, estimated at
$200m over rhe past 12 months,
and reduced inflows, particu-
larly by commercial batiks ner-
vously watching the country.
hare combined to empty the
coffers.
The lempira, the Honduran
currency, which . has traded at
two to the dollar for the past
50 years, has been effectively
devalued by 25 per cent on the
emerging black market where
it is trading at 2.50 to the
dollar.
U.S. aid to Honduras this
year is $48m, only $700,000
more than 298L Military assist-
ance is 810.6m, an increase of
In addition, Honduras
will receive $35m under tbe
U.S.’s Caribbean Basin develop-
ment programme (CBI) where-
as E3 Salvador is scheduled for
$128m under the CBL
The outgoing military govern*
ment asked Washington for
$100m in aid this year. But,
shortly before, taking office, the
new Government was told by
the U.S. embassy in Honduras,
which prepared a draft econo-
mic programme for the Govern-
ment,. that “any special
economic assistance would be
in the context of the CBI and
would be oriented towards
augmenting credit available to
the private sector, sot budget-
dry support.”
Ten years of military, rule
have also increased ill-afforded
defence- spending. The 15.000-
strong armed forces are back
in their barracks, but one-fifth
of tbe budget still goes on
defence.
The fiscal deficit Is the
central problem. Last year's
current account deficit of $2S5m
was 10.5 per cent of $2.7bn
gross domestic- product
The embassy document,
which has served as the basis
for the Government’s own pro-
gramme, recommended a strong
dose of what has been termed
“ Reaganomics for the Third
World.” . .
Measures include tbe dives-
titure of non-productive state
enterprises such as Conada, the
industrial development corpora-
tion which over-extended itself
building up cement and other
industries.
There is little domestic unrest
in Honduras at tile moment,
although the unions are becar.i-
log restless as unemployment
grows and the peasants are
frustrated at the slowing down
of the land reform programme.
The guerrilla groups in
Honduras ara tiny, ■with a
limited folio wing. However, the
involvement of Honduran troops
in support of the U.S.-backed
army in El Salvador fighting
left-wing guerrillas prompted a
bomb attack late Sunday night
on two power plants which
affected Tegucigalpa. Sixteen
people were killed in the attack,
whkh brought the city to a halt
for- 12 hours and caused an
estimated $20mHWorth of
damage.
The group, calling itself
Froylan Turcios — after a
-Honduran left-wing writer of
the early 20th century — claimed
responsibility and said it was a
protest against the Honduran
army's involvement in E(
Salvador’s civil war. Residents
of Tegucigalpa said it was the
fault of the Salvadorean
guerrillas. A store owner, busy
selling thousands of candles,
said “ Honduras is not to blame
for what is happening in El
Salvador."
| Nuclear accident risks
; ‘higher than first thought 9
) BY CHRIS SHERWELL IN WASHINGTON
Effectiveness of Maverick
missile questioned
BY REGINALD DALE, US. EDITOR, IN WASHINGTON
j THE Nuclear Regulatory Com-
, mission, the official agency
■ overseeing nuclear safety in
the U.S.. has sharply reassessed
the risks of a serious accident
at nuclear plants in the
country.
; A commission study just
; released analysed 19,400 mis-
haps between 1969-1979. It
I picked out 169 for detailed
■ review and found that 52 were
” significant” — that is, poten-
tial contributors to a melt
down of the nuclear core of
the plant.
The study concluded that the
likelihood of a major accident
was one in a thousand years of
reactor operation. The country
acquires a thousand years of
reactor operation experience
every 10 to 20 years, according
to estimates.
Previous assessments, not-
ably the Rasmussen report
have put the chances at about
i one in 20.000 years of opera-
tions. arguing that accidents
resulting in core damage would
require a series of failures in
sequence.
The latest assessment may
already be out of date, however,
because changes made in
nuclear reactor operations since
tbe Three Mile Island accident
in March, 1979 are thought by
tbe commission to have reduced
the chances of a serious acci-
dent.
The commission's own target
safety level is one in 10,000
years of operation.
Accidents studied by the com-
mission typically involved: loss
of the feedwater which is turned
Into steam to generate elec-
tricity; loss of reactor coolant,
leading to overheating; breaks
in the main steam line; and loss
of electricity from outside the
nuclear site at shutdown times,
depriving safety systems of
power.
De la Madrid
polk 74%
of votes cast
By Ronald fiudtatun
in Mexico City
Sr Miguel de la Madrir of
Mexico’s ruling Partido
Revolucionario Institncionai
(PRI) so far has 74 per cent
of the votes cast In Sunday’s
presidential elections. Some
73 per cent of the votes have
been counted.
As a result, he is likely to
become the first FBI presi-
dential candidate to be
elected with less than 80 per
cent of the vote. However,
Sr de la Madrid did face a
record six opposition candi-
dates.
It Is estimated that 76 per
cent of the 3L5m electorate
turned out, compared with
50 per cent at mid-term elec-
tions in 1979.
Sr Pablo Emilio Madera, of
the right-wing Partido Accion
Nadonal (PAN) is assured of
second place with 14 per cent
of the votes cast.
A CONGRESSIONAL watchdog
agency has raised major
question marks over the $5bn
(£2.9bn) advanced Maverick air-
to-ground missile programme.
In a report designed to check
the effectiveness of Pentagon
weapons testing, the General
Accounting Office (GAO) says
there is no evidence the missile
“ can be used effectively by U.S.
military personnel in combat”.
Deficiencies
"The GAO says delivery of the
missile to the air force should
be held back until deficiencies
have been corrected. In par-
ticular, it questions the
Maverick’s ability to f ulfil its
tank-killing mission at night and
in adverse weather.
The Pentagon is to decide
next month whether to purchase
200 of the missiles from Hughes
Aircraft as a possible first ster>
towards buying a total of 61.000
to replace the original, daytime
only version. The GAO says
more tests should be carried out
even before the first 200 are
ordered.
The report says that even
under very favourable testing
conditions the missile bad only
"limited success”. It questioned
whether In actual combat pilots
could distinguish a friendly
from a hostile tank at the
"stand-off” range from which
the missile is meant to be fired.
The report says (hat tests so
far have not proved that the
missile cannot be deceived and
defeated by objects such as sun-
warmed rocks, burning battle-
field wreckage or deliberate
countermeasures, such as the
firing of a tank cannon.
f
WORLD TRADE NEWS
TOKYO’S TELECOMMUNICATIONS PROCUREMENT PROGRAMME
U.S. groups vie for Japanese state deals
BY CHARLES SMITH, FAR EAST EDITOR IN TOKYO
MOTOROLA and .American
Telephone and Telegraph Inter-
national fATTl) have become
the first two foreign electronics
companies to seek participation
in Japan's recently liberalised
telecommunications equipment
procurement programme.
Motorola has been short-listed
as one of five companies from
which Nippon Telegraph and
Telephone — the slate telecom-
munications concern — may de-
cide to buy mobile telephone
equipment under what is kn own
as Track III A of ^he NTT pro-
curement system ATTI is a can-
didate for joint development
with NTT of ar. echo canceller.
NTT expects to decide with-
in ihe next few weeks whether
to accent the ATTI application
but will not be in a position to
award contracts for mobile tele-
phone equipment until the
spring of next year.
It says that Motorola and
ATT! are the only two foreign
companies that have submitted
firm applications under tracks II
and III of the procurement sys-
tem since the system was
liberalised at the beginning of
1981.
Until the end of 1980. NTT
had purchased almost no
foreign equipment, despite ihe
fact that it spends some Y SOObn
f£1.8ranj per year on procure-
ment. The liberalised procure-
ment system introduced early
last year provides for three
different purchasing procedures,
known as Tracks 1. II and III.
Items covered by Track T
procedure include equipment
not directly related to telecom-
munications such as facsimile
machines, data terminal equip-
ment. measuring instruments.
These are now being purchased
through a system of open fen-
der. NTT says it has purchased
about Y4.7bn worth of Track I
equipment from a total cf 49
foreign companies over the las:
year. The total annual value of
its Track I purchases is around
YSOObn.
Items boughi under Tracks II
and II are directly related so
leiecommunica lions and — :r. tine
case cf Track 111 — have :o be
developed *o meet NTT specifi-
cations. NTT says that the re-
ccin' of only two firm applica-
tions from foreign companies
for participation in Tracks II
%nd III may re Seer a leek of
understanding of the J.tp:ne.?e
approach to “ joint dcelcp-
raeni."
When NTT needs to bu-» Tele-
communication? equipment that
is not readily available cr. the
market it nominates a: least
two companies as partrcip.Vi in
a joint development programme
over which the corporation’s
owe technical specialists exer-
cise final control. Foreign com-
panies have been wary of
entering such programmes, NTT
says, because of a reluctance to
share their technical secrets.
After realising that foreign
companies were reacting
cautiously to its Track III
procurement programme NTT
sent a mission to tbe U.S. in
March I9S2 m explain how the
system worked. It was after this,
rhe corporation says, that ATTI
applied to participate in the
Track III programme for echo-
•jaaceiiiny equipment.
The first published infor-
mation on NTTs Track U and
III requirements was made
available last August — in
Japanese — and the relevant
documents were bought by 170
companies of which 131 were
foreign. This year the equivalent
documents will be published in
English, but foreign companies
wishing to participate in any
of the programmes will be
required to submit applications
in Japanese. A number of
foreign companies, including
ITT. GTE. Mitel and Lorxn have
already qualified to take part
in bidding for PBX digital
systems — under Track I — in the
autumn.
Although it admits that only
’* modest ” progress has been
made to date in implementing
the new liberalised procure-
ment procedures. NTT says
that foreign participation in tbe
programme should grow
steadily. Tbe corporation also
claims that its efforts have yet
to be matched by any major
Western telecommunications
entity.
Hong Kong
rail contracts
won by Aoki
TOKYO — Aoki Construction
of Japan said the Hong Kong
Mass Transit Railway Corp
fMTRC) has awarded con-
struction contracts worth a
total of Y28bn (£63m) to the
Japanese concern for work
on its new subway line on
Hong Kong island.
The orders concern the con-
struction of rhe Prk Shu Wan
station, rail car depots, and
transformers, and will be
part of the YSS flbn third
phase of _ the -MTRC? subway
project, it said.
The contracts bring total con-
struction orders to Japanese
companies from the MTRC to
YISQbn or about 65 per cent
of the third phase plans.
Reuter.
Algerian gas dispute taken to arbitration
BY FRANCIS GHILES
TRUNKLINE LN’G and the
Panhandle Eastern Pipeline
company, subsidiaries of the
U.S. utility. Panhandle Eastern,
have decided to resort to
international arbitration jn a
bid to resolve a dispute with
Sonatrack. Ihe -Algerian state
oil and gas monopoly.
They have filed documents
with the arbitration court of
International Chamber of Com-
merce in Paris in an attempt
to force Son^irp.ch lo honour
3 liquefied natural ga* fLNG»
contract signed in 1975 and
approved in 1977 by the
Algerian Government and the
L'.$. Federal Energy Regulatory
Commission. The contract was
for rhe delivery. over 20 year*,
uf 3n annual volume of
1 65m cu m of gas.
The start up date for
deliveries wa« to have been
last August hut Sonatra.?:-. has
claimed the delay ’.vis due tv
'■ mechanical problems."
Had the delivery of LNG
storied last August. Par.'iandlv
would have paid Sonarracr. a
price of 84.12 fob per mti.ticr.
British Thermal Unit* *3TY'.
This price would have de.lir ‘■i
to S3. 92 per rr.i'mn ETC aticr
July 1. 19S2. a* She .or.
clauses in the contract ”c the
price of gas. to some enter*. ■?
that of crude.
This is the first time s
dispute beriveen Sortairach r.rd
a foreign buyer nf gas is going
to internat; r 'r..i! cri\*rr.
SiMe^n month: ac • m s.lVs
between Sanairac.i ar*.; —■ Pr.- r *
Gas of the U S. cr-IIarsed V:*-
SONATRACH-S LNG SALES CONTRACTS JULY 1982
Volume
Importer Start up
Gaz de France 7965
Gaz de France 1972
Gaz de France 1982
Enagas (Spin) 1976
Distrigas (U.5.) 1978
Trunkline (U.S.) 1981
DistrigasZ (Belgium) 1982
ENI 1982
(bn cu m)
9.15
9.15
9.15
2 A*
1.1
4 J8
2 St
12 . 0 $
■ Estimate. * Due to sort this autumn. $ Due to start this autumn !
pending agree m ent. {
, |
cause r.f difference? over price.
Earlier this ear. however,
Sonatrach and France signed
'T.c of the worKT-i large-'l LNG
contracts, for the supply of
9.1'jn cubic metres of ~js j
year from Algeria.
The Algerians are in the ;
middle of difficult negotiations ;
with the Italians over the j
supply of I2nn cubic metres uf [
gas a year lo be supplies |
through the recently completed !
Trans-Mediterranean pipeline j
Spate in move to make Libya pay debts of about $130m
BY ROBERT GRAHAM IN MADRID
PART OF Spain's trade pay-
ments to Li by? have been
temporarily withhold, to bring
pre-sure >.n the Libyan auth-
orise- for debts :n some cases
dating back more than a year.
The tntol amount involved is
undented to be nearly S13Um
(£77m).
Trado rajmeivs "-yi/vogn
Sr. Lin Lib;? :»rg
a quarterly basis via reciprocal
payments from the respective
central banks.
The second-quarter se; fig-
ment -buuJd have occurred on
Jung 30 bur the Libyans have
delayed giving any authorisa-
tion for payments.
The Spanish Ministry oF
Commerce has decided to hold
merits to put pressure •:
Libyans over a *orie-* o." ■
items. The Ministry :s ?
lariy concerned agejt z.j
for canned good? and
which it says ;. 5 caustr.?
chip to a number of srr'I
parties.
In February, cr.
Sn.nisn delegation we:
T* i •! r.ni ‘h*
r.s.u-
C'.r - .-
:■ *.o
:scd ’o pay ouTs-andinc debts
wiT'iin 3!> days. This led to the
sc:~ssieni of some $6Qm-worth.
Of the current Oi::stq.id:ng
Libyan door in Spain, some
SI 00m is said to concern goods
applied and a further S30m
construction work. For their
pari, the Libyan? have almost
owed them by Spain.
: v -p 1 ■ ;".y ; : :r • rude v ; p*»! i •.•?.
It is this latter element which ]
ha? remained unpaid by the j
Spanish. 1
Reuter reports from Brussels: !
The European Investment Bank
(EIB) will loan Spain S40m
over 15 years at 12.55 per cent
for construction of a railway
loop-iine around Barcelona, the j
European Comnuimtv
S. Korea
quits
Brussels
textile talks
By Giles Merritt in Brussels
DEADLOCK in the key nego-
tiations on EEC textiles
imports under the Multiiibre
Arrangement (TUFA) has
resulted In a decision by
South Korea to quit the
Brussels negotiating table.
The adjournment by the
Seoul Government of the talks
until this autumn is the sixth
such move by a major MBA
signatory In recent weeks and
is a further setback to tbe
European Commission's
chances of securing a series
of restrictive textile Import
deals for tbe period np until
1986.
The departure of tbe South
Korean negotiating team
comes hard on the heels of the
recent announcement by the
Philippines that It is tem-
porarily shelving its bUateral
MFA discussions with tbe
Brussels Commissioii.
It also follows decisions by
India. Hong Kong, Malaysia
and Singapore to opt for
“second round” negotiations
with Brussels in September,
by which time It is boped that
tbe EEC hardline position on
its HFA terms will have
softened.
In addition to the with-
drawals by those six
countries' delegations,
Hungary, Czechoslovakia and
Ro mania have also recalled
their negotiators recently for
a variety of reasons and will
he seeking farther talks on
their MFA terms. European
Commission officials say, how-
ever, that although the EEC
has met determined opposi-
tion to its textiles position, a
number of MFA pacts are also
being concluded.
Pakistan and Sri Lanka bare
provisionally accepted tbe
EEC's demands for anti-surge,
basket extractor ami anti-
fraud mechanisms in bilateral
pacts under MPA m, as have
Uruguay and Peru, with
Poland expected to initial its
acceptance shortly. By Sep-
tember of this year the
Brussels negotiators expect
some 7 to 10 sueh deals
to have been struck.
The EEC officials were also
making it plain that even
though its talks with the MFA
“ hardliners * have so far
resulted in deadlock with. six
principal textile exporting
nations, there Is no question
°f seeklpg a new and less res-
l—'rfSvo P* -"I'nl'-IB jr-, ■ ■ • • ■ .
High cost fleets ‘will
lose more ground to
low-wage operators’
BY ANDREW FISHER. SHIPPING CORRESPONDENT
THE HIGH-COST fleets of
northern Europe will increas-
ingly lose ground in the world’s
dry cargo markets to low-wage
operators such as those in the
Far East, Drewry Shipping
Consultants forecast yesterday.
“ Northern European and
even Greek shipowners will find
it more difficult to run profit-
able shipping operations, "
London-based Drewry said in a
major study of how inflation
has affected the international
dry cargo business.
Drewry said the 1970s had
exposed the traditional
shipping nations . to new and
acute inflationary pressures and
growing competition from
emergent shipping region s.
The gap between the high-
cost flags of Britain, Norway
and Sweden and the low cost
nations of the Far East was
widening steadily, especially in
terms of manning costs, it
added.
Since 1973, manning costs
had more than doubled. By the
end of last year, average
ma n n ing costs for a typical
European, dry cargo vessel
were $2,600 (£1,444) a day. For
a similar ship with an Asian
crew, the average was some 40
per cent less at $1,600 or so a
day.
Drewry reckoned that the.
need to cut costs - and secizre
access to overseas markets and
cargo producing areas would
further- erode the north Earo-
pean presence in. bulk shipping
| markets. -
“Demand for dry bulk ton-
Mge is likely to grow more
sluggishly and at a lower
average wage, meaning that the
low-wage countries of the Far
East will play an increasingly
dominant role in the bulk
trades."
Dre wry’s comments come as
rates for grain, coal, iron-ore
and other dry cargoes have
slumped sharply with no imme-
diate prospect of an upturn.
The northern European dry
bulk fleet has come down by
around 29 per cent since 1976
to 3L8m dwt and could drop
another 10 per cent in the rest
of the 1980s, said Mr Dennis
Stonebiidge, a Drewiy director.
Since 1976, he said, Britain’s
merchant fleet had fallen by 25
per cent, Sweden’s by as much
as 54 per cent, the Netherlands
by 42 per cent, Norway's by 23
per cent and West Germany’s
by 17 per cent.
Whereas a 25,000 dwt bulk
carrier built in the late 1970s
needed to earn around $13 a
ton per month to break even
the current . rates were onlv
around $6.
He forecast a lot more bank-
ruptcies in shipping, especially
In the dry bulk sector. Worsen-
ing the rate slump was the fact
that a large volume of ships
ordered In better times was now
commg on to the market
r, T £?J mvact °? I*flaiionanj
C osts T endencies on Dry Cargo
Stepping Operations; Drewry
snipping Consultants. Price £9d
French aerospace boost
BY TERRY DOOSWORTH IN PARIS
THE FRENCH aerospace indus-
try is expected to d»w a
substantial increase in Us 1981
trade surplus following an
increase in exports last year of
32 per cent.
While a detailed breakdown
of the trade balance is not yet
available, the Groupement des
Industries Francoises Aero-
nautiques et Spatiales (GifasL
the industry trade body, has
published figures showing a
25 per cent increase in turnover
to FFr44hn (£3J9bn). Of this
FFY 27bn wem to ...export-
markets, while overseas orders
also, rose by 3Q per cent to
r*-rh ee ’’ SBfcn.
the industry was due last year
rsmge ot
About 65 per cent of exports
according, to pre limin ary e^ii-
Sf’ were for railHa^ pro-
ducts. These include the
Dassault range of strike air-
craft, and a number of different
missile systems made both by
Aerospatiale, the “ nationalised
flroup. and- by Matra, in which
the Government has recently
tak?n a controlling stake.
the .civil equipment side.
Preach companies registered
strong exports with the Airbus
airliner, which js gambled by
"lide
m
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Financial Times Wednesday July 7- 1982
UK NEWS
Group formed for nuclear waste treatment
BY QAY1D RSHLOCK, SCIENCE EDITOR
THREE COMPANIES with,
experience in T^pHiing radio*
active and toxic materials, led
by Northern Engineering In-
dustries, are pooling resources
to provide radio-active waste
treatment services and equip-
ment for the UK.
Their joint venture, NEI
Waste Technologies, of Gates-
head. Is a commercial response
to the Government's stated aim
of involving private industry
more in radio-active waste f rad-
waste) processing in Britain;
NEC’s partners in the venture
are Ghent Nuclear Systems, of
Seattle (35 per cent) and Pollu-
tion Prevention Consultants of
Crawley, Sussex (10 per cent).
Mr John Bennett, director of
NEI Waste Technologies and a
former nuclear reactor designer,
says the company will specialise
in retrieving and treating low-
and medium-activity radwaste.
It is looking especially to the
experience of Chem Nuclear
Systems, which operates on a
« cradle-to-grave ” basis the U.S.
Government's Barn we IT waste
disposal site, in South Carolina,
and a similar newer facility in
Taiwan.
“We hope to utilise Chem
Nuclear’s experience and proven
designs,” Mr Bennett said yes-
terday. These include an elec-
trochemical process for decon-
taminating active components.
The joint venture is already
discussing new facilities and
services required by die Cen-
tral Electricity ' Generating
Board at its nuclear stations.
The Department of the
Environment, responsible for
the safe disposal of radwaste
in Britain; expects to order
several large facilities for dis-
posal in the 1980s.
Over a quarter of the depart-
ment’s research and develop-
ment budget is being spent on
radio-active waste management.
Last year it spent almost £10m
of a total R and D budget of
£36m. Only building and con-
struction received more R and
D funds, 29 per cent of the bud-
get.
British Nuclear Fuels received
a two-year contract worth over
£2m from the department for
research on vitrifying high-level
radwaste from the reprocessing
of spent ■ nuclear fuel. NEI
supplies the sealed stainless
steel storage vessels used to
store . highly radioactive liquid.
The Environment Department
has just published a detailed
inventory of the radwaste
expected to accumulate in
Britain by the year 2000, on the
basis of a nuclear power
capacity expanding to 20,000
Mv by that year.
The estimates, published in
Nuclear Energy, assume that all
new reactors ordered will be of
the pressurised water (FWR)
type, and that toe last of the
Magnox reactors will be shut
down in 1997.
They, also assume that the
reprocessing of Magnox fuel will
continue at. the present rate of
about 1.300 tonnes per year un-
til the late 1990s. and that the
reprocessing of oxide fuel will
begin in 1990 and build up to
600 tonnes per year.
The largest single item is a
total of 400,000 cubic metres, of
low-activity solid wastes from
nuclear fuel fabrication and re-
processing, to be disposed by
burial or by sea dumping.
This type of waste will be
accumulating at the rate of
20,000 cubic metres per year in
the 1990s.
The UK Atomic Energy
Authority, the Government's
agent for the annual Atlantic
sea dump of low-activity rad-
waste, last week obtained a
High Court injunction against
Greenpeace, the environmen-
talist pressure group, to prevent
interference with this year’s
sea dump, later this month.
Highly radio-active liquids
from, reprocessing will total
1,090 cubic metres by the year
2000, ax4; will be increasing at
the rate of about 200 cubic
metres a year.
Amersham International,
which produces radio-active
medical and research products,
is a substantial producer of low-
level radwaste, of a type it is
planned to bury at a depth of
20-30 metres,' in an underground
storage facility required by the
late-1980s.-
By the year 2000, Amersham
is expected to be producing
20,000 cubic metres a year of
miscellaneous solid wastes of
rhis kind.
Environment . Department
scientists estimate that Britain
will need three underground
storage facilities for radwaste
In the next decade. Most
urgently needed is an “en-
gineered trench,” 20-30 metres
deep, for low-level waste.
The others win be a modified
mine or purpose-built .cavity
about 100 metres deep, and a
purpose-built repository about
300 metres deep. .
Vitrification
plant
approved
By David Fishtock, Science Editor
BRITISH NUCLEAR FUELS
(BNFL) has been given plan-
ning permission to build a
£150m . chemical processing
plant to convert highly radio-
<<«ctive effluent into glass ingots
at its Sellafield (Wlndscale)
factory in Cumbria.
But Copeland Council has
made the condition that BNFL
should exercise the option in
contracts for the reprocessing
of spent fuel for other coun-
tries, and return the vitrified
effluent 'as soon as practicable.
The ingots of glass would be
returned to the country of
origin — principally Japan, with
which it has the biggest re-
processing contracts — in the
casks in which spent fuel is
imported by sea.
Supporting the planning
application, Councillor James
Johnson said the glass ingots
might have to be stared in
Cum ban for 50 years before
being disposed of.
The Government has recently
accepted scientific advice that
the glass ingots will be easier
to manage in their final reposi-
tory if they are first allowed to
"cool” radioactively for 50 to
100 years.
BNFL is building its vitrifica-
tion. plant close to its facilities
for storing highly radio active
reprocessing effluent in a battery
of sealed stainless steel tanks.
The plan will come at the end
of Thorp, the thermal oxide
reprocessing plant, an £860m
chemical facility for which
planning permission was given
by the Government following a
public inquire in 1977.
Thorp is expected to be com-
missioned in the late 19SQs. The
vitrification plant is expected to
come on-stream just ahead of
Thorp.
It will be based on French
technology used for several
years at the Marcoule establish-
ment of the French Atomic
Energy Commission and avail-
able freely to BNFL under its
partnership in United Rehpro-
the UK-French-Germaa com-
pany.
- Roger Taylor
The barque 'inca sails down the Thames as London’s Tower Bridge opens at the start yesterday of the ten-week Round Britain
Clipper Challenge race against the brig Marques. The two ships, owned by the China Clipper Society, will each be crewed by
r ' five different teams of youngsters.
Car output hits lowest level since 1950s
BY KENNETH GOODMG, MOTOR IMXJSTRY CORRESPONDENT
CAR PRODUCTION In the
first six months this year- was
nearly % per cent below that
for the same period last year
and dropped back to a Low
level not seen since the late
1950s.
Output was particularly hit
in June, a month, when. the. . .
manufacturers are normally
bnllding up production to
meet heavy demand in the
peak sales period of August
and September.
According to Department
of Industry provisional esti-
mates, In June this year car
output was only 79,000, com-
pared with KHMXM) in the
same month, of. 198L- _ ...
The month was relatively
free of industrial troubles.
The only reported dispute
was at Ford’s Haleweod plant,
where two days of trouble
eost 1,500 Escorts:
As a result, production for
the first six months was only
482,000 or L8 per cent below
the 491,000 for the -January- ‘
June period of 1981. -
In contrast, commercial
vehicle output picked up by
17.4 per cent daring the six-
months. But this was from the
worst level since records were
first kept in the current form.
Commercial vehicle produc-
tion in June was 23^00, com-
pared with 23,000 in June last
year. For the first six months
-this year the total -was 137,200, -
agafnst 116^800 for the first
half of 198L
BL’s market share op to more than 30%
BY KENNETH GOODING, MOTOR INDUSTRY CORRESPONDENT
BL’s SHARE of the new-car
market shot .up to more than
30 per cent in the last two days
of June. In the first six months
of the year the group’s penetra-
tion was about 18 per cent only.
The group believes the rise
In sales was mainly due to its
promotional campaign, Move
over to Austin Rover,. launched
at the start of the month.
BL says the campaign runs
until the end of August and
market-share should continue
at a relatively high level till
then.
The heavy promotional
spending is linked with a
financial incentive scheme for
dealers. This gives at least £100
extra on each car sold and up
to £700 on the last of the 1981
Rovers, Allegros, TR7s and
Maxis,' to be found though they
have gone out of production.
Through June, July and
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V*>*y
Having attracted your
attention with our
anagrams, here are a
few words about'
WASHINGTON and its'
winningiways: >■
: Skilled and loyal work-
:'A".
iy ideal location for;’ ,v ....
G;Europe and-rest ofl - \
o ^united RingdornfO : ; .
' - ‘Excellent modern.
; industrialiand: Wu-G",
- : commercial properties.
First-class community
and educational Wy o '
'ntaihe'nitfdso^f'Oy: iliiooio.
: A vVGW. ' ' ' - . V. v o..-
i-AthHapd ■td.;|):eaihfin.an'claT
vO ■ o g ; . oe f ayhts - ab qmG: i : o
| 1 | : m Am ng and success, i
^WASHINGTON Noctoan;Batcheior y; h
^ijaheFsGDB^S:- f - - ; ,V ;
‘ > i l i 3
August dealers can win. on
average an extra £400 a car
by reaching agreed sales
objectives.
There are indications that
some deaims passed on all that
extra discount to customers, to
win sales at the end of last
month.
The Metro responded well to
the campaign. It apparently
took sales away in particular
from Ford’s Fiesta. A Ford
dealer said yesterday he could
stm sen Fiestas if the Metro
price was £100 below the Fiesta
but had no chance to compete
with a £400 differential.
BL started June badly. The
sales surge became apparent
only in the last six days of the
month, in which its penetration
stayed above 20 per cent It
rose to 34 per cent on the
penultimate day and to 31 per
cent on the last day.
Buoyant
home
market
forecast by
Nationwide
By William Cochrane
THE NEXT six months should
see a much more buoyant
housing market, higher house
prices and a further reduction
in mortgage rates, the Nation-
wide Building Society said
yesterday.
Nationwide. Britain's third
largest building society, bases
its optimism for the market on
a 45- per cent increase in total
housing starts in the 12 months
to the end of ApriL
On prices, the society’s last
bulletin- estimates an average
UK increase of 3 per cent in
the -second quarter of 1982, fol-
lowing .a rise of only 1 per
cent in the first-quarter and a
depressed second half of 1981.
On mortgage rates, Mr Cyril
En glish, Nationwide’s chief
general manager, said in
London yesterday that ' in the
absence of definite information
on the movement of bank base
rates, it Was unlikely that this
week's meeting of building
societies would decide on a cnt.
• Given that. the Government
could be seen to be tackling
inflation successfully, however,
he could see a derision being
taken early in August for im-
plementation on September L. .
Mr v.rt giigh also confirmed
fjT* iw indications ffw»f building
societies are not visibly suffer-
ing from . the incursion of the
clearing banks into mortgage
lending.
Nationwide reports record
gross receipts of £L39bn and
record net receipts of £416m
for the first six months of 1982,
while loans approved rose
sharply from £5 65m to £725m.
“There is no Shortage of
demand for home loans as far
as Nationwide is: concerned,”
said Mr English. “And certainly
for the immediate future we see
little prospect: of any lessening
in demand."
The withdrawal of the 23rd
issue of National Savings Certi-
ficates and the Government's
lower savings target for the
current fiscal year had provided
some welcome relief for build-
ing societies.
Banks, too, were generally
not competitive on personal
savings for tfhe sort of money
which building societies sought
to attract The main feature at
present was tile high level of
competition mnong b uilding
societies' for Investment funds.
— Mr Elfish -acknowledged that
much of the money societies
are receiving is being attracted
into accounts; where differential
interest is paid above the
prevailing ordinary share rate.
“It would appear that the
time has . come for b unding
societies to reduce the present
top differential of over 2 per
cent on term money,” he said.
“Here at Nationwide we shall
be lowering the differential on
capital bonds to li per cent
above the ordinary *are rate
on all new capital bonds opened
after July 3L”
Finance house to offer
cut-price loans and credit
BT PAUL TAYLOR
THE UK finance subsidiary of
a big U.S. bank is launching
what it damns is the first ever
UK “ money sale ” tomorrow —
offering cut-price personal and
home loans through its net-
work of 26 High Street money-
shops.
Boston Trust and Savings, a
subsidiary of First National
Bank of Boston, has about
20,000 customers— 80 per cent
personal— and just under £25 m
in outstanding loans.
Until August 14 the finance
bouse will be offering 10 per
cent off interest charges on
unsecured personal loans
between £300 and £3,000 and
on homeowner loans ranging
between £1,000 and £7,500.
This wiH mean a reduction
in the annual percentage
interest rate on a four-year
personal loan, for instance,
from S0J3 per cent to 27.4 per
cent and a reduction from 23. S
per cent to 21.6 per cent on
the annual rate on a seven-year
home loan.
Boston Trust Is also offering
free credit for the first three
months on its revolving credit
account, which provides facili-
ties up to 30 times a monthly
payment On a £3,000 todflHy,
this could mean a “ saving ”
of up to £198.
Mr Graham Telford, a
director of Boston Trust
and Savings, recognised that
the rates were not necessarily
competitive with those offered
by the deaxring banks.
But “they are very attrac-
tive compared to hire purchase,
certain popular credit cars and
finance company loans adver-
tised in national newspapers,”
he sadd.
Mr Teflford said the comp any ,
which has opened five of fis
moneysfoops inside Defoeobaans
stores. “ has to be tfrmic-wng- of
itself more as a retailer.” He
slid further sales to increase,
customers during “stock
demand periods ” might follow
if this experiment proved a
success.
Treasury man appointed
to top Employment job
MR MICHAEL QUINLAN,
deputy secretary in the Trea-
sury in charge of industry, was
yesterday appointed permanent
secretary at the Department of
Employment in succession to
Sir Kenneth Barnes, who retires
at Hie end of the year.
Mr Quinlan, 51, has been an
secondment ■ to the Treasury
from the Ministry of Defence
.since 1981.
He is the second senior
Treasury man to be appointed
to head another department
within a few -days. Last Friday
Sir William Ryrie, second'
permanent secretary in charge
the IT*, economy and Mr
Quinlan’s, immediate superior,
was appointed senior official in
the Overseas Development
Administration. •
Mr Quinlan has spent most
of his career in the MoD. His
first job after leaving Oxford
and doing his national service
with the .Royal Air Force was
in the Air Ministry,
After a number . of jobs
there and with the MoD
he was seconded to the British
Delegation to the North
Atlantic Treaty Organisation
between 1970 and 2973. He then
spent three years in the
Cabinet Office before returning
to the Ministry,.
City group
supports
Gower view
By John Moore,
Gty Correspondent.
A GROUP of City professionals,
politicians and Investors has
welcomed the main conclusions
of a controversial review of in-
vestor protection prepared by
Prof Jim Gower.
The Wider Share Ownership
Council differs from the main-
stream of City Opinion on the
Gower report, commissioned by
the Department of Trade after
a series of failures on invest-
ment companies. The council
agrees with most of the con-
clusions reached in the report:.
The ■ only reservation the
council notes in its submission
is the implication that greater
emphasis should be laid on com-
petence as opposed to honesty.
“ The problem here- is the
measure of . competence
(whether in advance or in retro-
spect)” says .the counriL
It finds Prof Gower's sugges-
tion that supervision of the in-
vestment community should be
undertaken by self -regulatory
agencies, withthe Government
exercising a residual and super-
visory role, “eminently reason-
able.’'
The council says: "The un-
contented success of a regula-
tory method of this land in the
unit "bust industry is- perhaps
tiie best example which can be
cited in support”
The council lays particular
stress on the aims of develop-
ing the scrutiny exercised/*with
an enviable history erf success "
by toe Panel on Takeovers - and
Mergers.
The council -expresses con-
cern about the adequacy of
protection for investors in these .
situations, where the interests
of shareholders hi companies
making or accepting a bid do
not sometimes receive adequate,
consideration.
The Council for the'Securities
Industry, the City's math iegu-
.latoiy body, is “now - toe
-obvious body to play, at leading
.jole in any system such as that
proposed by Prof Gow^r,” says
toe Wider Share Ownership,
Commission attacks
inadequate action
against racial bias
BY USA WOOD
THE COMMISSION for Racial
Equality yesterday described as
“ disappointingly inadequate ”
toe responses of the Govern-
ment, employers, trades unions
and local authorities to prob-
lems of racial disadvantage.
The commission, which itself
was severely criticised last year
by a Common's Select Commit-
tee, said that reports by Lord
Scarman on the Brixton riots,
and an earlier report by a Com-
mons Horae Affairs committee
had constituted “ an action pro-
gramme of major significance."
The commission’s fifth annual
report continued:. “ The nation
was thus presented with a
unique oportunity for faster pro-
gress in rejuvenating inner-city
areas, eliminating racial dis-
crimination and disadvantage,
and improving race relations.
“So far toe response by the
Government and -others has
been disappointingly inade-
quate. It lacks the sense of
urgency that ran through Lord
Scarman's report in particular.”
The reoort agreed that it was
more difficult in a time of re-
cession, but it was at such times
that toe vulnerable sections of
society suffered most and,
“even steps that require only
a comparatively modest outlay
are not being taken by
Government”
The Gov e r n ment could have
given a stronger lead on the
CRE’s Draft Code of Practice
for employers which was sub-
mitted at the end of- 1981 but
still awaited a Government deci-
sion, toe report complained.
Nor had toe Government taken
action on monitoring toe equal
opportunity clause in its con-
tracts, as had been done in the
U.S., although it was carrying
out an experiment in monitor-
ing employees in non-industrial
grades of the Civil Service.
“We are firmly convinced,
said the CRE, "that unless
monitoring is undertaken in
housing and other areas as well
as employment, there can be
no real possibility of eliminat-
ing discrimination.”
Positive Government moves,
however, included the appoint-
ment of Sir George Young as
Minister with special responsi-
bility for race relations aspects
of the work of the Department
of toe Environment and changes
In administrative arrangements
for special Government grants
for Commonwealth immigrants.
The commission quoted other
recommendations made by the
Home Affairs Committee in its
report last year on racial dis-
advantage on which no action
had been taken. “In particular,
■we would again urge “* e
Government to give the Home
Office a bigger co-ordinating
role," said the report.
Mr David Lane, chairman of
toe Commission for Racial
Equality, who retires next
month, said other proposals
made by Lord Scarman had
been “watered down” after
opposition by the police.
The CRE grew out of the old
Community Relations Commis-
si on, which promoted racial
harmony, and the Race Rela-
tions Board, which enforced
anti-discrimination laws. Mr
Lane defended the continuation
of the. dual role in one organi-
sation.
Burroughs to sue health
authority in computer row
BY JASON CRISP
BURROUGHS, the UJ5. com-
puter company, is to sue the
Oxfordshire Regional Health
Authority for damages after it
opted to buy an I CL computer,
even though the American com-
pany was placed first on both
price and technical ability.
Earlier this week Burroughs
failed to get an interim injunc-
tion from a High Court judge
which would ‘have prevented
toe authority from buying the
ICL computer. In a statement
yesterday Buroughs said it
would now pursue its action to
a full trial.
The contract, worth about
£500,000, was for a computer
at Northampton General Hospi-
tal. Similar systems are likely
to be installed at other hospitals
in the region. Burroughs says
the contracts it is suing for are
worth several million pounds.
The move is part of a grow-
ing effort by U-S. manufac-
turers to ensure that puhlic pro-
curement of computers does not
favour ICL or other British
manufacturers, as it has in toe
past EEC and Gatt rules now
require that the public procure-
ment of computers is through
open tender.
IBM is also taking legal
action against the Severn -Trent
Water Authority, which went
against the advice of its tech-
nical experts to choose ICL. At
the end of this month IBM will
have a High Court judicial re-
view of the way in which the
authority reached its decision
to buy an ICL -system. In this
case the ICL computer is
thought to have been cheaper.
Another U.S- company, Sperry
Univac, is also thought to be
considering talcing legal action
against toe water authority as
its system was -rated technically
above ICL. But it is likely to
await the outcome of toe IBM
action.
IBM has fought fiercely to
stop the Government favouring
ICL. It lobbied vigorously over
the computerisation of the
PAYE system but the contract
was eventually awarded, to ICL.
Oxfordshire Regional Health
Authority had been expected to
decide on the Burroughs
system in May. The decision
was put off for a month and it
switched to ICL, which was The
fourth choice. Other companies
competing included IBM, Digital
Equipment and British Medical
Data Systems.
Yesterday neither the health
authority nor ICL were
prepared to comment on
Burrough’s decision to continue
its action.
£81,000 pay increase for
Heron Corporation chief
BY CHARLES BATCHELOR
MR GERALD RONSON, chair-
man of Heron Corporation, the
property and service station
group, has been given an
£81,000 pay rise, talcing his
earnings to £288,000.
Details of Mr Ronson’s 39 per
cent wage increase were given
in the company’s annual report
for the year ended March 31,
which was published yesterday.
Mr Alan Goldman, Heron's
finance director, said the salary
was “ not unusually large for
a company of this size. How
many other major British com-
panies managed to- increase
profits over the past year?" he
asked. -
Commenting on possible
criticism of toe rise he added:
“Heron is a private company
and I do not think what few
shareholders there are will be
complaining. They will be
delighted with the group’s per-
formance.”
In its report Heron announced
a 15 per cent rise in pre-tax
profit to £15 ,5m on. turnover
which was 6 per cent higher at
£322m.
Heron revealed on Monday
that it had acquired a 5.1 per
cent stake in UDS Group, the
department store and clothing
.retailing group, but said this was
for investment purposes only.
Who took out
540,000 life assurance
policies
in tne last year?
The readers of a great
national newspaper,
that’s who!
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SlnaiKial Twines Wednesday July f igg2.
UK NEWS
: ,^Iam A Rodg» exanjines.a report wJhich advocates government action on quality approval
Reshaped standards system ‘would help exports’
cuts plan
angers
teachers
By Mchad Dixen, . :
Education Corraspon4«ot
THE IABOUR PARTY and the
two main teachers’ nw fryn 1 !
reacted angrily : yesterday to
official forecasts -that more
than 16,000 teachers in English
■schools and -collegefi must be
dismissed nest yeto J£ planned
economies in educational spend-
ing are to be achieved.
In addition to the dismissals
of staff' aged' under 50, the
•schools and colleges would need
to lose a 'further 16,600 older
teachers through normal .and
early retirements.
: The forecasts, drawn up .by a
subcommittee of central- an^
local government, officials,
r assume that the pay rise' to be
. awarded to teachers next April
. will be the same as this year’s
.6 per cent increase^ .
■ The projections will be can-
jtidered on July 19 by the- Con-
sultative Council on ' Local
.Government Finance, which is
.headed by Mr Michael Beset
i tine. Environment . Secretary^ ■_
? In the State schools in
-England, which employ about
420.000 teachers, the projected
-14,000 dismissals would repre-
' sent 3^ per ‘.cent of the total
Land the 15^000 retirements 3.6
iper cent. ' ■ .
t In the polytechnics - . and
: colleges,, .the dismissals
'would repref»nt 8L3 per - cent
.and the 1.580 retirements. 5.7
' per. cent of the 27,900 staff
"teaching at a higher academic
' grade than . GGE Advanced
. levels. •
l The officials on the snbeom-
, mittee doubt that many of these
"staff could be ocmyertetf- -to
' teach on -toe.' more practical
courses which will form part of
the Manpower Services Com-
mission’s Youth ' Training
SchemC^and, for whidr eol ^g^
No figures are available' for
-■-the number of teachers regis-
tered as tmemployed in Eng 1
land. But in Britain as a whole,
214*29 experienced 1 teaching
staff were on the -register on
. June 2. :
, The two largest -teachers’
■ tinian»T--tiie National Union of
- Teachers and - the-National
; Association of. -"Schoolmasters
;■ and Union of. Women Teachers
:• —both said yesterday that they
- woukt (resist any eompulsocr
r fttlTHid»TWde<g- .
Mr Neil Kinnock. the . Labour
spokesman on. education,, is
pressing for a foU Gouuhohs
debate oa Jher projections. - ;
IN BRITAIN yon can buy motor
oft gradw -nndezf m j American
standard J "or. a e^metar
approved "tinder a Japanese
inspection ; system (JOB), on
which yga can adjust the light
meter ecQOirffihg - to a/ Gernuto '
meawtofe system CSSf}.
- No British acronym appears
in tthss groojp; bemuse, - nhtfi
recently, -tfeBritisii were sOT-
aaajy^re. oj nraby
.“uses' of a coherent.'
^invui-w ai indft rfj. - , ' -’
. Th’e boards. “ British made”
or a ^HHixmy’s name, such as
FirSt; ion h piece of etaanlees
steel. "asOd to be considered
so warranties of quality.
And no-one would tofiik'-af
using 'git ofBcial standard Jaa a'
non-tariff harrier to unwanted
HnpprtS. '
.Tbtey, all that hafi.?-##^grfv
and -&e- .Government is
faereastagfly urgent noises^xmt
getting country’s standards
extern in order. .' f
. K>d standards hefe'.fteos
achieve the levels of qualify,
retimnlity and safety irir d^®n
anamanof acture which fn&e&B'
tngly are . a prerequmteV; of
successful con^etition in ip^ld
markets,” Mr Patrick. Jerkin.
Secretary. of State for
said last nMHito. •-
“ We are aimang to makevonr
current haphazard ■ arrange-
ments work, more efficient^,",. •
Sfc Beter Rees, Minhrtej^ for-
Trade, has praenised ■ that Ws
rdqpartment would publish a
consultative document sftrafy
containing proposals to enhance
the status of UK standards .,■<
-It .is something of a jSo-
Incadence that the report
Cabmefs Advisory Council for
Applied Research - and-
ment arrives in the middle of
Otis new enthusiasm.
• The eonndl'set up Sts-woiWng
party on standards a year ago
jo very different circumstances.
Sir Frederick Warner had- just
published fur “ the .National
Economic Development^ ‘Office
a study on ‘the use of standards
as' non-tariff barriers, and the
council was- distressed that it
had : irat had iteich impact
Dr Bryan lindley, a mesnber
of the council, suggested a wider
Study on file impact on product
design of standards, regulation,
certification and approrols. and
. became chmnnan. -of "rite six-
n^m working party.
-The report was .completed In
May and circulated among the
■ interested . Government depart-
ments.
The central .argument of the
«tw5y is that a astern of ^ertifl- •
citkm. and ap proval of oolnpoo-
ents -and products that is
demonstrably demanding is
needed to gain respect' for
British goods abroad and cp&ufe
toat goods sold on tbe- houie
jDfarfeet are .also of -a 3u£fc
standard.
Moreover, Britain must have
an efficient process for writing
and implementing its own stan-
dards. Otherwise, according to
Ur. Idndley, who Is director ot
technology at Dunlop, It would
become- totally reliant on others'
technological pace.
Experience in this country and
efisewhetre shows the way ot
untiring quality -in . manufac-
turing. So-called quality man-
agement systems have long
been an aspect of defence pro-
cnrement, ensuring cbusistency
and accuracy m prodnctlon, and
tiiese are now being Applied
-more widely in maunfacUiring .
In some cases, a company ho*
BRITAIN'S programme to
promote metrication should be
resumed urgently, the
CaUnefs Advisory Committee
for Applied. Besaazch and
Development, says. .
In a report on the use of
atendards and • * certification
g fftem es to strengthen the
competitiveness .of British
industry, Acted argues that
the potential savings for manu-
faetaring indusby in a single
standardised - measurement
system outweigU -any dls<
advantages.
- ^Abandoning the metrica-
tion programme and abolish-
ing the Metrication Board was
a retrograde jrtep, creating
impediments, snch.as the pro-
hibition of ‘ dual pricing, to
mrtrlcatlon. to the engineer-
ing Indnstries.”
The working parly’s major
recommendation is that laws
should be changed to enhance
the status quality standards
In this country to the levels
existing in other countries.
Specifically, compliance with
British standards should con-
stitute a- defence against
product liability actions and
be a mitigating factor in
setting tosttranee premiums.
The report also urges the
- rapid creation of independent
product certification and
approval -schemes, especially
in companies and sectors
where exporting is important
These schemes should be
accredited by a new national
organisation that would con-
trol a British quality mark
similar to the West- German
DIN Gepruft or the Japanese
JIS marks.
More aggress i ve policing of
false claims of compliance
with British . standards Is
needed . to support the
integrity of the system.
Counterfeiting is said to be
widespread In some sectors.
poses a scheme oh Its component
suppliers. ■' In others, a whole
sector, such' 'as industrial
fasteners. Sets up a scheme.
The Acard. report estimates
about 10,000 of the 90,000 UK
manufacturing companies have
been, assessed under public sec-
tor schemes and probably as
many again by the private sec-
tor.
The' next stop is mdependezrt
approval or certification by an
mdustiy-sponsored body, such
as -the British .Electro technical
Approvals Board (BEAB) in
the -electric?! products,, sector.
Acard says - there are a few
dozen of these, but hopes to
see several hundred covering
most manufactured products
within three to five years.
Finally, it is felt that certi-
fication and approval schemes
must -be, recognised by the
Government as being based on
sound professional practice and
independent of manufacturers’
interests. The use of a national
mark would be a considerable
aid to exports, the working
party argues. -
Dr lindley said Britain often
tried to negotiate reciprocity
with foreign countries on pro-
duct standards, so that each
would accept the' other’s
approval schemes.
“If we want our products to
be allowed in other countries
without being subjected to
testing, we must have our own
tests. But our schemes are
often hot recognised because
they do not have Government
backing”
Most manufacturers believe
teat the costs of failure of their
products are much higher than
the costs of appraisal and pre-
that all Government depart-
ments and public bodies should
be required to make use of
British standards and product
certification schemes in their
purchasing practices.
Changes to the Consumer
Safety Act and the Health and
Safety at Work Act should be
made so that British standards
are recognised as meeting legal
requirements. If manufacturers
knew they had some defence
against product liability claims,
they would be more likely to
adhere to the standards.
Government agencies that
make regulations should try to
link them with standards and
voluntary codes of practice.
The working party found
great dissatisfaction among
manufacturers over the policing
of claims of compliance with
existing British standards and
regulation, notably those in the
Trade Descriptions Act. The
problem, said Dr Lindley. is
that enforcement is delegated
by the Department of Trade to
overworked trading standards
offices in local authorities.
Acard wants to see more
aggressive policing, not just of
cases of non-compliance or
counterfeiting that come to
light, but also at the ports of
entry to the country to stop
imports that do not meet
British standards.
. Dr Lindley acknowledged
that there was an element of
protectionism in the suggestion.
“ We may need to be pro-
tectionist in this way from time
to time, but we do not have
the means in our arsenal now”
The working party wants the
Government to provide more,
funds to the British Standards
Institution so that the process
of writing standards can be
speeded up. It also seeks more
Government support for UK
involvement in international
standards forums,
vention. Acard found that, in
West Germany, the DIN stan-
dards for quality manufacture
and certification were con-
sidered a minimum by many
manufacturers. However, it
believes a number of incentives
are necessary to bring about
concerted action.
For example, it recommends
It urges the creation of an
advisory body attached to Acard
and the Cabinet Office that
would push for implementation
of its recommendations and
the setting-up of an inter-depart-
mental committee to co-ordinate
Government responses.
The working party also
recommends that a single de-
partment be made responsible
for design and standards policy.
Dr Lindley does not say
which of the two departments
most concerned, Trade and In-
dustry, he would like to see
take over, but Acard seems
more in sympathy with the De-
partment of Industry.
Facing International Com-
petition. The Impact on Pro-
duct Design of Standards.
Regulation, Certification and
Approvals. Cabinet Office Ad-
visory Council for Applied Re-
search and Development.
Ford plant
may switch
to coal
,4. ■ 6
bit seaside theatre 9
BY JAMES McDonald
HIGH- FEES commanded by
performers and their managers
and agents may be putting sea-
side local authorities out of the
entertainment business, said
Mr Mkbael Montague, chairman
of the English Tourist Board.
“.The >320,000 a- week enter-
ainer is not only killing the
seaside municipal theatre, but a
lot else besides,” he. tokT the
annual meeting of. the Southern,
Tourist Board at H&y£ng Island
yesterday- *" - ■;
' The de ntin g of municipal sea-
side- theatres was certain, 'with
tickets at £4 or £5 or more and
In some cases no reductions for
children, but this could also
death o*-.tfce seaside •
pier, said Mr Montague. ^
“ Rate payers who are sub-
siding these shows are c xupplain-
ing that they cant afford. to. see
them.”
- 3f mnnkdpal theatres, bad to
cSose “toe smaller acts, the sup-
port casts ■ and the budding stars
will have fewer plaoes. to tread
toe boards. r
“ Overpriced stars , have pat
the variety dubs— the 20th.
century , successor to the mosic
halls— -out of business and all
the indications are that the same
may happen to . the seaside
theatres , unless something Is
done .about it” •
Hr ‘Montague suggested that.
h£g',8pin£ as*% could: be, shared
fay resorts, with performances
in neighbouring towns on dif-
ferent nights.. Resorts must co-
operate to hold down prices.
If necessary, he said, muni-
cipal authorities must vote with
their cheque books and drop
the expensive stars altogether..
Audience participation and quiz
shows, talent nights, rock 'con-
certs and speciality acts could
fiU the seats if the price was
right
Mr Montague said the Insti-
tute of Municipal Entertainment
had a working party examining
the problem and .the British
Resorts Association was. also
looking at* ways to help. '
Ulster management training plan
BY OUR 8B5A5T CORRESPONDENT
THE GOVERNMENT yesterday
proposed the setting up of a
non-state body to oversee
management training in
Northern Ireland.
A discussion paper on the
reorganisation of management
education and training from
the -Northern Ireland Depart-
ment of Manpower Services
said an authoritative Indepen-
dent body should be organised
and managed by user interests.
■Such an organisation would
be funded from membership
fees and charges for Its ser-
vices, but substantial Govern-
ment assistance would be
needed for the first three years.
:Wlth sufficient support from
industry and with pump-prim-
ing finance from the state, it
would give the leadership and
focus at present absent in toe
development of managerial
skills.
The paper said present
government funding supported
a range of unrelated objectives.
There was confusion of effort
and an overlap of respon-
sibility, it said.
The Northern Ireland Econo-
mic Council, an advisory body,
will help set up a steering
committee to produce detailed
proposals for the new body and
to take further soundings from
industry.
• Ma na gement training and
education in Northern Ireland,
Department of Manpower Ser-
vies, Netherleigh Massey Ave,
Belfast BT4 2JP.
• A showpiece housing estate
in Craigavon, County Arma g h,
faces the bulldozer — 10 years
after it was built
Only a quarter of toe SO
houses are occupied, the others
have been damaged by vandals
or are falling into decay.
About 450 homes in
Craigavon have been lying
vacant for some time.
The houses are owned by the
Northern Ireland Housing
Executive, the state body which
controls public housing through*
out the province.
for heating
By Maurice Samudson
FORD Is considering a £20m
plan to use coal instead cf
gas for its main heating needs
at its Dagenham factory.
The company is understood
to have sounded out the
Department of Industry about
a 25 per cent grant under the
boiler conversion scheme, but
a decision to carry out the
conversion has not yet been
made. It could raise the com-
pany's coal burn to 120,000
tonnes a year.
New boilers
The company said y ester,
day that even when toe
economics of the scheme had
been worked out, its fate
could depend on the state of
industrial relations in the
British coal Industry.
The Dagenham car plant
already uses coal for space
heating in the winter and new
boilers would provide process
heat for which gas is
currently used.
Dagenham has large
storage capacity and facilities
to unload coal brought by
ships from North East
England. The size of these
storage yards could cancel out /
its fears about the future <f
interruptions in coal supply.
j
1975 P
Multitone supplies
first radio pagers
for British Telecom's
London service
mullibne
Muhikxk' t'li-'ilnviK''. HI i'.
<>•28 Uiuli'iuvwx: Sir, . r I ■••natm Nl “.IT
I.'lqihi IK" QJ-233 ~t‘ii T»-W. 26»s»IS
. The Cure.
Think about the welter of reports, files,
memos, printout and statistics, that swamp
you every day and ifs no wonder that the
ledaon maker ends upwithamind
;malady
Ifs called Infbrrnaniar
Itortunatdy after over 95 years of
experience and research, into the problem,
Burroughs have come up with a range of
mirade cures. .
Take our OH5EHE for example.
Ifs just cine part of the incredibly ad-
vanced jnfonrationsys tern called OHS L
OHSHLE is an electronic filing system
that will track down a file in a mete 8 secs,
on the scantiest of information, often just a
word or phrase from a memo. (For afl that
ifs as easy to use as a typewriter)
In all ifH carry at least 80,000 files oi; to
put it another way 50 filing cabinets. %t ifs
no bigger than a photocopier and perhaps
most important or all, ifs sensibly paced.
But this is only one way Burroughs can
you collect, create, analy^, store, recall,
and distribute inf ormatio n.
Makingir workfbr you, not againstyou.
If you’d like to know more about OES1
or any of the other ways we can help stop
Informant infecting your company contact
the Customer. Information Department
(FT7/7), Burroughs Machines Limited,
Heathrow House, Bath Road, Hounslow
Middlesex. '
But do it now.
After all prevention is better than cure.
UK NEWS
aaNSro i l» i i »'r. S.
10
Norway likely to react ! Proposal to
, T^ T n . . ■■ i cut airport
to JN. Sea gas tax move congestion
BY SUE CAMERON
THE GOVERNMENT'S decision
to give special tax concessions
on gas raw materials to Shell,
Esso and British Petroleum
could lead to Norwegian petro-
chemicals producers demanding
.1 cut in tfie price of their
North Sea gas feedstocks.
Among those that might
benefit is Imperial Chemical
Industries — the one major UK
chemical producer excluded
from the British tax deal on
raw materials.
If the Norwegian price of
ethane gas feedstock is trimmed
then some of Norway's North
Sea producers might find it
more profitable to sell gas to
ICI than to their domestic
chemical companies.
An ethane carrying gipeline
which runs from Lhe Norwegian
r. kofi.sk field to Tcet-ide already
easts. It is understood that
Phillips Petroleum, operator on
the Ekoftsk field and operator
of the pipeline, -has had
informal discussions with ICI
about a deal on ethane
deliveries. At present ethane
from Ekofisk is piped to Teci-
side and then shipped back to
Norway where it is used as a
petrochemical raw material at
Rafnes. Three companies — the
state-owned Slatoil, Norsk
. Hydra and Saga Ftrokjemi —
have interests in the petro-
chemicals complex at Rafnes.
: The complex ha? used ethane
from Ekofisk as a petro-
chemical raw -material since
,1978. But when the gas was
used there were major
difficulties over the price that
should be charged for it —
similar to those now being
experienced in the UK.
The main problem, as in
Britain today, was that nobody
else in Europe used ethane to
make petrochemicals and it
was therefore hard to
establish a market rate. But
after tortuous negotiations
involving buyers, sellers and
the Norwegian Government, it
was agreed that the ethane
price should be related to the
prices of other petrochemicals
feedstocks, such a s the oil-
based naphtha.
It is thought the agreement
still left the Norwegian ethane
price some 40 per cent lower
than that of paphtha. But the
market price of naphtha — used
by most West European petro-
chemical companies as a raw
■material — has recently fallen
and the differential between
ethane and naphtha in Norway
has therefore narrowed.
The price of naphtha in Europe
is put at about 33p a therm. The
Norwegian ethane price to
petrochemical companies at
Rafnes is thought to be more
than 20p a therm.
But a Norwegian ethane price
of 20p plus a therm would be
considerably higher than the
price the chemical subsidiaries
cf Shell, Esso and BP are
expected to pay for the gas In
Britain. The UK Government
has agreed to accept a low
valuation for ethane for tax
purposes. This will enable Shell,
Esso and BP to transfer the gas
to their chemical subsidiaries
without faring huge bills for
Petroleum Revenue Tax. Their
subsidiaries are expected to pay
parent companies well under
16p a therm for their gas.
_The differential between the
Norwegian and the UK ethane
prices is likely to bring demands
for the Norwegian Government
to step in and lower the ethane
price paid by petrochemical
companies chare.
The Norwegian petrochemical
companies may well call on
their government to follow the
UK precedent on pricing — to
ensure that British companies 1
do not have an unfair advan- ,
tage on raw material costs.
Meanwhile in the UK ICI |
has been left out of the tax :
deal because:
9 It is not an oil company
subsidiary and does not buy its
petrochemical feedstocks 2: ,
transfer prices.
• It uses the oil-based naphtha, j
not ethane, at its Wilton 1
complex. !
But ICI has protested strongly j
that the Government's tax 1
concessions to Shell. Els so and 1
BP will put it at a competitive j
disadvantage, and it has warned .
ithat dn the longer term, it j
could be forced to close its !
'Wilton complex with the loss j
of up to 9,000 jobs.
Tbe Norwegians are building j
a North Sea gas gathering ;
system which will increase .
their supplies of ethane. It is
due to be completed by 1986. j
They could then find they 1
have more ethane than they
need for the Rafnes chemical :
complex — and they might agree !
to ethane from Ekofisk being !
sold to ICI at Teesside instead '
of being shipped back to
Norway. However, this would ;
only make economic sense if ;
the Norwegian ethane price ,
was lowered. i
A crucial decision on the size !
of the plant that will separate !
gases coming through the pipe- :
line—^the size of the plant will I
determine how much extra
ethane becomes available — is \
due to be taken at the end of 1
this month.
Sale laws
too complex
says CBI
THE LAW on High Street “ bar-
gain offers" was yriricised yes-
terday by the Confederation of
British Industry as so complex
that shoppers, traders and retail
trading standards officers found
it difficult to understand.
The CBI has asked Dr Gerard
Vaushan. the Consumer .Affairs
Minister. :o make a “ thorough i
and systematic job" of review-
ing the Price Marking (Bargain
Offers » Order.
The CBFs comments came in
evidence to the Department of
Trade which is studying a re-
port from the Office of Fair
Trading, published last year,
calling for an overhaul of the
bargain offer laws.
The CBI said that many
traders were having to abandon
price cutting campaigns because
no one could say for sure
■whether they were legal. At
the same time, less scrupulous j
traders were comm? up with |
new ideas for bogus bargain :
offers which were within the i
letter of the law. but quite ;
agawsSt its spirit.
English regions to receive
increased development aid
BY ANTHONY MOB ETON, REGIONAL AFFAIRS EDITOR
THE GOVERNMENT is to put
more resources behind the work
nfthe English regional develop-
ment organisations to counter
their complaint that they suffer
by comparison with the develop-
ment agencies in 'Scotland and
Wales.
lir Norman Lament, Minister
of State at the Department of.
Industry, told the North East
Development Council yesterday
that he would increase its grant
by 50 per cent if it could draw
up a “ realistically costed pro-
gramme of overseas promo-
tion."
The Government would also,
on its matching pound-for*
pound principle, increase the
amount granted to the council
if NEDC increased its income
from constituent members in
its area.
Mr Gordon Wainwrigbt. chair-
man nf NEDC, said after the
meeting: “ We have been
offered the -prospect of parity
with Wales and Scotland if the
North East can achieve a co-
ordinated and effective promo-
tional overseas programme.”
The Government decision ,
offers the NEDC the oppor-
tunity to receive at least
another £130,000 a year, to- !
gether with a further sum equal ;
to as much as it can raise in
direct contributions from client !
members.
NEDC’s incomes from the |
Government last year was 1
£230,000 towards its total t
budget of £528.000.
Mr Lamont wrote to all four 1
English regional development ;
organisations — the North West .
Industrial Development Associ- <•
atkm, the Yorkshire and ;
Humberside Development j
Association and the Devon and
Cornwall Development Board J
are the others — at the end .
of last month outlining his |
proposals.
Norwida bad a grant of :
£121,000 towards its income of ;
£281.000 last year. The York- 1
shire and Humberside grant ;
was £65.000 towards £248.000.
and Devon and Cornwall
received £55.000 towards an
outlay of £110,000.
By Michael Donne.
Aerospace Correspondent
AIRPORT CONGESTION
could be substantially
reduced through checking in
passengers and their baggage
at outside centres, and
conveying them by bus
directly to their aircraft.
“ Remote stations ” were
suggested to the public
planning inquiry into the
proposed development of
Stansted Airport. Essex, by
Mr Edward House, formerly
In aircraft scheduling with
British Airways.
Giving evidence to the
inquiry on behalf of the
Council for the Protection of
Rural England, which is
opposed to the development
of Stansted. Mr House
suggested that remote
stations would be signi-
ficantly cheaper than the
development of Stansted, and
extremely flexible.
“ Passengers for any
specific destination could be
required to check in at a
specified point remote from
the airport, or at least out-
side the airport periphery,
thus dispensing with nearly
all the walking and waiting
within the airport terminal.
“Customs, immigration and
seeuritv checks would all
take place at these remote
stations, of which two or
three might suffice for the
average airport, but of which
up to a dozen might eventu-
ally be needed for major
traffic centres,” said Mr
House.
“ Passengers and their
baggage, not necessarily
together, would then be taken
in large groups in special
customs and Immigration
secure vehicles to be
deposited straight into their
aircraft on the apron.”
At Heathrow after the year
2000. said Mr House, there
would be as many as eight
remote stations to handle the
number of travellers fore-
cast
“The whole changeover at
any airport could be
achieved gradually over many
vean,” said Mr House. He
argued that the remote
station system could obviate
the need for the proposed
Stansted expansion.
The inquiry was also told
yesterday that the British
Tourist Authority's policy of
promoting London as the
country's most important
tourist centre was wrong.
• Plans by Britannia Airways
to fly inclusive tour charter
services between London
(Gatwick) and Jersey have
been upheld by Lord Cock-
field, Secretary for Trade. He
dismissed an appeal by
British Caledonian Airways
seeking to overturn the
original award of the licence
to Britannia by the Civil
Aviation Authority.
Lord Cockfield has also
upheld the CA^’s decision to
grant British Midland Air-
ways the right to fly
scheduled services between
Birmingham and Brussels,
dismissing an appeal by
Alidair against that decision.
Maritime league plans to fight naval cuts
BY BRIDGET BLOOM, DEFENCE CORRESPONDENT
[ CUTS IN Britain's naval
; strength Introduced over the
[ past year carry serious national
risks and are unacceptable in
J military terms. Admiral Hill-
; Norton, former chief of defence
staff, said in London yesterday.
1 Ho was speaking at the launch-
ing of a new association called
the British Maritime League
which plans to “reverse tbe
decline in Britain's maritime
fortunes."
Admiral Hill-N orton. who was
i chief of defence staff in the
mid-1970s, and is president of
1 the new league, has been
! personally critical of the naval
1 policy followed by Mr John
1 Nott. the Defence Secretary.
He said yesterday it would be
premature for tbe .league to
have specific agreed objectives
on naval policy. It was not in
business to offer ready-made
alternatives to tbe Defence
White Paper, he said.
However, it seemed clear that
the league, said to be without
party affiliation, will be another,
possibly powerful voice in the
growing lobby concerned to see
Hr Nott's- naval cuts reversed.
Lord Hill-Norton said - it
was an essential part of the
league's business to make sure-
the lessons of the Falkland*
crisis were ** learned and
promulgated.”
Sir Ronald S wayne. vice
president of the league and
Chairman of Overseas Con-
tainers. noted that successive
governments over the last
decade had shifted the emphasis
of Britain's defence policy
away from the traditional
maritime priorities, both in
military and commercial terms.
The Faikiands , crisis had
shown the importance of the
merchant marine with 50 ships
being taken, up from the trade.
The latest defence white
paper was “deeply disappoint-
ing" in that it did nothing to
enhance Britain’s declining
ability, in conjunction with its
allies, to give western shipping
“ the minimum protection that
our freedom and security
require."
Mr Nott was expected .at
yesterday's launching but cried
off at the . last minute. Six
Frank Cooper, Permanent
Under Secretary at the Ministry
of Defence, was there in his
place, and among the guests
was Admiral Sir Henry Leach,
the First Sea Lord.
The league's 27-member
council includes Mr Frank
Chappie, general secretary of
the Electrical and Plumbing
Trades Union; Mr Patrick
Daffy. Labour MP; Sir Derek
Rayner, adviser to the Prime
Minister on efficiency; and Mr
Keith Speed, the former
Minister of the Navy who was
sacked by Mrs Thatcher last
year.
! Drug prices ‘take account of foreign sales 9
| BY SUE CAMERON
THE DEPARTMENT of Health
last night stressed that tbe
prices UK pharmaceutical com-
panies charge for their drugs
overseas were taken into coo-
si deration when making assess-
ments under the British price
regulation scheme.
This statement follows claims
that the National Health
Service drugs bill could be cut
if parallel imports — where pro-
ducts are bought cheaply in one
country and then sold in a
higher-priced market — were
made easier.
Such Imports axe permitted
under EEC legislations, but the
department has just success-
fully prosecuted a parallel
importer of drugs to the UK
for not having a product licence.
The importer said in court that
easing restrictions on such
imports would cut prices.
Companies selling or import-
ing drugs to Britain must have
a product licence. To obtain
tins, they have to satisfy the
authorities, with research-based
evidence, that a medicine is
safe, effective and of a uniform
quality.
A parallel importing com-
pany cannot rely on establish-
ing that the manufacturer of a
particular drag has already
obtained a product licence for
it Under the Medicines Act,
the importer must have one as
well. But it is unlikely to get
the necessary research-based
evidence from the manufac-
turer.
The UK rules could be in
breach of -EEC law on parallel
importing. But the Department
of Health said yesterday there
were no plans to scrap the
requirement for product
licences for all companies sell-
ing drugs, it added tint even
when a parallel importer was
selling another company’s
branded drug, there was no
proof that the medicine was hot
counterfeit.
Even if the UK were forced-
to change its policy on product
licences, industry experts be-
lieve it is unlikely that there
would be any reduction in
Britain's drugs bill.
Under the pharmaceutical
price regulation scheme, the
department can force a drug
group to reduce the prices It
charges the National Health
Service, or it can refuse to
approve drug price increases if
it believes a company's overall
profits are excessive.
The department looks at a
company’s overall profits, its
investment -in the UK, its
research costs and the prices
it charges both in Britain and
abroad.
Wrapping up a £2bn success story
ON* THE SIXTH FLOOR of one
of the largest buildings in
London's Baker Street a team
of experts is investigating the
properties of a new. mainly
: plastic container, which could
spell the death of the familiar
j food can.
\ They are also studying the
I potential of other forms of plas-
| tic which could pose a serious
challenge to glass bottles and
jars.
By coincidence, the office
where this research is being
carried out is the former head-
quarters of Britain's biggest
packaging company. Metal Box.
The researchers work for
Marks and Spencer. Britain’s
leading retail cfaain, which
moved into the building when
its former neighbour moved, to
Reading several years ago.
Like most merchandisers,
Marks & Spencer plays down
the effort it puts into pack-
aging. “We prefer to practise
the art of not packaging and to
! let our merchandise sell itself."
j says Mr Bob Franklin, technical
i manager of its packaging
j division.
His words belie the impor-
tance of packaging in aiding
Marks & Spencer's sates, which
last year tapped £2bn. or f?!e
influence which it has over
some of its High Street com-
: petitors.
S One estimate puts Marks &
< Spencer's annual bill for pack-
Maurice Samuelson looks at
Marks & Spencer’s packaging
St Michael bottles of vintage chablis— where Marks & Spencer
grudgingly lifts its taboo on glass containers
aging materials of all kinds at.
£40m. There is no official figure,
since packaging is not budgeted
separately in the company's pro-
duction costs, but the amounts
of materials needed are known.
The company uses 1&.500
tonnes of corrugated cases a
year and 1,700 tonnes of poly-
styrene coat hangers. This is
apart from plastic film, paper
bags, cans and cartons, used
for a wide variety of products.
Since Marks & Spencer seUs
only under its own St Michael
brand name, it has established
a formidable reputation for
quality control among its whole-
sale suppliers. This reputation
spills over into the packaging
industry, which regards it with
a mixture of fear, respect- and
occasional irritation.
One of its most notorious
idiosyucracies has been its
policy on glass. Until recently,
the material was virtually taboo
in Marks & Spencer stores.
Jars of salad dressing are
among the few examples of
glasf-pacfcaging in Marks St
Spencer food departments — a
grudging recognition of its
strong reputation elsewhere.
Btft Mr Franklin insists that in
the long term, supermarkets
will want to replace glass.
Like most members of the
food trade, he is keenly in-
terested in polyethylene teraph-
thalate, or PET. the crysal clear
plastic which has all but; re-
placed- the larger sizes of soft
drinks bottles.
The company is in close touch
with Imperial Chemical Indus-
tries, which makes the Metises
polymer at Harrogate, as well as
with • Eastman Kodak which
makes a rival product- called
FETG, in the US.
In Mr Franklin’s view, the
container which could take the
place of the food can is a lami-
nated tray with a foil seal
called Lamipak. being do
veloped by Metal Box.
Other new forms of packag-
ing, such as polystyrene milk
shake carton, designed by the
Swedish Tetrapak company,
plastic sandwich cases and pre-
formed salad trays are already
playing an important part in
Marks and Spencer’s food sales,
which are increasing by more
than 20 per cent a year in value
and 11 per cent in volume.
ENERGY REVIEW
Electricity in Scotland: the road
By Martin Dickson
FE’.'.' PEOPLE arc following
tt? Government's attempts '.o
revive aluminium inciting a:
Jnversordon. in ;h<? Scottish
r.;chiand c . with keener inleresi
than Mr Donald Miller.
For Mr Miller 13 :he chair-
rrs;*n of lhe South of Scot ' and
E tel trie:?;- Bm-rd. which lost it?
L-rae-t eu.-mmer ;:i- r December
when Brai.-'h Ahm:; mum .shut
riov p. tii* in-.crgordnn «mellcr.
m;-:nly beta use of the high cos;
o: power.
ip an si ti-mrit tn revive lit*
.= :r r lter. ’he « Government has
liccr. hoidme d ?eU:.sions with
re. aluminium oianufac-
:u— r- and holding out the pos-
s i'>: of heftv power sufor.:-
ri.e- Bur .-a far there have
’r.eer. no and British
Alumtnutm. which h-*s fc*n» :h*»
-•j n zr.ir.z or. ? care and main-
•ensrr'- b;* -5'. i- keen in becin
dj‘-p r - T m; or its remaining
The closure of Invercordon
had fou r mam effects on
‘.he SSF.E. which supplies power
to 1.6m consumers ;n southern
,-,r:d central Scotland and
“?waps” power with the North
of Scotland Hydro-Electric
Bo=rd. serving the Highlands
-«nd islands.
0 F:r^t. :t ha.? lost revenue
because of lower electricity
sales.
• Second. the Board's ccncrat-
iRg costs have been reduced.
Lower eleciridiy demand means.
:* has been able to reduce the
operation of its least efficient
U'.'. or stations, those v.-rtii the
highest ceneratin^ co'-ls. It is
■i.-vitiu i>i cus ! -burn: nr r’auo”?
a* Cockonrs? and Kincardine
less intensively— its coai con-
sumption will drop by 7nn firi'i
•onnes .1 year — and is olsn cr-
rmr down on the u*e of its nil-
fired Nation at Inver!- p.
© Third, it has bough*. from
FT - «h Aluminium f~r £P9m ‘he
company’s stake in the Hurrter-
tion ar.d re'iduai gr. laion! fa
sror? B advanced cas cooled
reactor (AGR> nuclear power
station, and will have to pay
interest charges on this sum.
The net effect of these three
factors over the next few years
• hould have a bread balance.
s fi that the Irvereordon closure
produce? no -ienifeon - . effect on
this Brard's tariffs-. Nor should
there be any effect on price* if
the plant does reopen, since the
t'.iivcrnmer.t would be subsidis-
ing the cost r-f the power.
© Fourth, the closure will
'.ncreaste the KSEB's substantial
ence-s vener;:t»r.e capacity — an
i'5«e which hrs stirred vp con-
siderable public controversy >n
rL-'-oR* veers.
But controversy is no; sjjme-
thir.g that seems ;n worry Mr
MiHcr. 55. who took over in
Afri! from Mr Roy Berrid;e.
the chairman Arce !f>77.
Mr r.I;”cr. v.hn had been
(icpu!” ehsTSian *.ir.c-: jflfW). c*
a man ol ratter abraMve manner
■.vlv*. ■.•'early does n<.-r suffer fyo'-x
eiadTy ar.d is s-tom in his
defence rf the Board's record.
Aratnst the background of the
Ir.vvrgordnr. closure, wha; are
the main chaUcnccs facire rrrm
s.» he anthers up the reins nf
the top office - .'
— Relation;; with consumers. In
Sen! i and. a.- in the resi r>F ;he
UK. the elecsricsiy -uppiy indus-
try faces a major challenge in
moderating electricity price
rtics particularly ?o Industry
Bri'aitT'? heavier industrial
user' of rower have been com-
■pliinir: for two years tn-*t they
pay fcii-triiitiaKy more ?h. % n
tteir Cor.’ir.fro'nl competitor;.
Tbe Goverr.men - concerned
irtG* r**? car '■niiJfi widen even
more o’. *.r :hc cr>G 2 .nc decade
Br:ia:n dues nn< his: Id 1 : j r.r-.-;
mricer *j«r.Y*r sV'rons !•» unro
-.ty-t. .m* held down the
pr:cc of coal burn* ;n other-.
MR DONALD MILLER
stoat in defence
However, pr. ces :r. See,:- sn-
are somewn.'.t cheaper r!ian :r.
:he resF of the CK The av-.-.-as?
Scottish pnee to dome-tic c-c,-
'.um.ers in If»50-S2 3.543;.
kilowatt hour, only per cent
nf the 4j221p > kwh charged
Ensljr.d ami I e-- Ft .-.o-j-.
try. the wa< true:' \es f v*-
Scotland enjoying a 2 ~*r ce-.*
price adfnn'a^e.
Reason? for tnc y..-c* •.Ic--*
include tte fact f ha T
contains a hich perccr'.azc •<:
the UK's hydro-esectnc power
plant — ■ the responsibility • :
;h? ncrt'cern beard — c.c
produces electric:*:- ver'
cheaply. A hirh propc-ror »'
S^ntiand'* po-’cr z.:o 7~ % -
vided by reiatively cr.e’p
rWTKKIP
SSEB- POWER STATIONS
..
^ 'lOHGAIWET
2480 MW
CLYDE'S
^HUHTEHSTOK
. 1 33* R4W ^
:S*ir»»vr E~
•
MILL
55 MW
BManV
60 MW
Ak LANARK
Jk HYDROS
mmoi rauao —
Sf-
IB MW
O Nuclear
■£■ Steam
• Gas Turbine
A Hydro
fifj*:yn Si'nti
nuclear plan!. However, the
SSLS says that these factors
are partial!;.- offset by th?
zer.crr.Uy higher cost of
Scottish coal.
But although Scnru«h elec-
*r:c:‘y prices generally compare
favourably wstit the re?* of the
UK trey have hi; the iiejdhnec
recently as a resuti of Brifj.-Ii
.M:t minium'? dec;?: on to clofe
Ir."er?ordon.
British Aluminium'* move
"s "he riimas of 1 lone and
ompiex stretching back to
*"r“ Iz’.e when the then
L^'sc-r GctYmmcnt nrnmorod
! rtf ]|irhA
ilumiEitisi plants British
Aluminium's at invergordon,
Alcan'.; in Northumberland and
Anglesey .Uuminiums near
Holyhead. All three made
special arranyenients to ensure
they ^ot cheap supplies of elec-
fruity, wlueli can account for
up to half the co*t of smelting
aluminium.
Jr. the ea?p nf Inversordon.
British .Muminium agreed to
pay for part of the construction
costs of the SSEB's Huntcrston
B nuclear station completed io
137ii. in return for a guaran-
teed supply of electricity.
But the costs nf nuclear
pewer have not worked out as
cheaply n was expected in the
from mvergordon
late 1960s. At the time of
closure last December, British
Aluminium faced power charges
of 1.67p a unit — very low by
the standards of other UK
industries bnt high compared to
those facing aluminum smelters
in countries such as Canada,
with abundant supplies of
cheap energy.
— Power station capacity. The
Invergordon closure means that
the SSEB has lost its largest
customer at a time when it
already has substantial excess
generating capacity.
Any electricity utility has to
have more generating plant
than the maximum demand on
its system, so that the additional
capacity can be brought into
service when plant fails or is
serviced. When ordering new
plant in the UK, the aim is to
have 28 per cent more plant
than is. .necessary to meet
maximum demand at any one
time.
However, the SSEB has about
3n per cent more plant than
necessary to meet this 28 per
cent requirement. The over-
capacity is the result of over-
op Linus tic forecasts of demand
growth in the late 1960s' and
early 1970s when new power
stations were ordered— just a
few years before growth rates
dropped sharply.
But Mr Miller says that people
who criticise the Board tor
excess capacity miss the poiat:
“It’s about time this thing was
got in proper perspective. What
really matters is achiev ing the
lowest possible costs.. It . is.
wrong to assume that because
your plant margin is bigger,
your costs will also be.”
The closure of Invergorden
demonstrates the point since It
will mean a higher plant margin
but— as indicated above— -lower,
system generating costs.
—The construction of Torness.
The SSEB is building a new
AGR nuclear station at Tornesai
on the Scottish east coast. Tt is
one of two AGRs — the other is
at Heysham in Lancashire — for
which the Government gave the
go-abead in late 1979. - .
Construction of the 1320 MW
station began in August 1980
and the project is on target to
produce its first commercial
load in early 1987. The . SSEB
says that it is still within its
March 1980 price tag of
£1.097bn, allowing for inflation.
However, the sluggish growth
now expected in electricity
demand means that the station
will not be needed on capacity
grounds until well into the
1990s. Why, then, is it being
built now?
The SSEB says that is is .
justified on . . purely, economic
grounds since nudear . power is
cheaper than coal or oil-fired
plant. It argues that by building
Torn ess early it win get adis-
cnunled cash flew advantage of
some £4O0m 'because this
enables oil fired plant to be. run
less.
But not everyone is quite- so
confident. In a report last year
on The Government’s nudear
strategy., the. House of: Com-
mons Select Committee ', on -
Hoc ray expressed Surprise that
the Scottish Office had not re-
examined the 'economic, case for
SSS* , P fo* Hght of -the
SSEB’s big plant margin and
said there wa., “undoubtedly a
case for not ordering two
AGRs.
—The operation the SSEB’s '
Gristing nuclear stations.
Humerston A. one or'RritainV'
first generation of Mapnox
nuclear, stations, cam’* into
operation in 1964 and h’K.peN;.'
formed extremely mi< : ever
since. - It hasiiad a.hKw] factor :
of over. SO per cent— ihe actual
production of .units, as a per-
centage of the units it is capable
of producing— placing it right
at the top of the international
nudear^ league table.
Hunters ton B — one of the
first AGRs to come into opera-
tion— has not been so trouble
free. First a major accident
occurred In 1977, when seawater
got into the cooling water
system of one of the reactors.
“ Mr Berridge, the recently
retired chairman, describes this
as “my most traumatic
■ experience by a long way. It
happened within a few months
of my taking on the job. cost os
money and put us in the lime-
Hght” . -
7 . The accident put the reactor
oiitlof action until 1980. But
the SSEB says it is now very
satisfied with the plant’s per-
formance. In the financial year
to last March-- - the . reactor
affected by the seawater had a
load factor of over 70 per cent.
Mr Miller says that this
would have been' nearer 90 per
cent if the plant had had “on-
load refuelling"— the ability to
refuel without shutting the
reactor down. The aim is to
'introduce on-load refuelling
later this year.
' - Hunterston B was also down-
rated early io its life (from the
66QMw each unit was designed
to put out) because of fears of
steel corrosion. But Mr Miller
says these fears have lanzely
proved unfounded and he
-expects that, the* plant's rating
win rise from about 580-59QMW
per unit now to about 64€Mw
by the mid-IRSOs.
■ ■' -We're very -pleased with the
plant”, he adds. “It gives us
great confidence Toriiess is
'going to be a first class
I'Cactor. . ,
. But ' Toriiess still ,has to be
, built on time and . to cost^— a job
which Mr Wilier regards! as one
of : his most - important chal-
lenges. “ "
cuts
is"'.. ' " ' 'Mr _ ,f :
> "X
M; I j., ■
.. c
n- . ii r
1 »1l-.
i sak’
•■r .
" ;b-W
Financiai Times Wednesday July 7 3^82
appointments
CONTRACTS
Mr C. J. Chfttwood has been
BPPoantfed chief executive of
GEORGE WIMPEY. He remains
©jup pa n a g fng director respon-
sive for the UK construction
<nvJaon. Mr Chetwood was
appointed chairman of the group
board of mapaseamflt in . 1975.
9° the restructuiing of the
S^oup in 1979 he became a group
managing director and chairman
of Wrmpey Constrnetten UK and
Babcock Product Engineering busy in Scotland
Mr C.J. .Qietwood ;
he took, over as <*hs Tjrny »i of
Wimpey, ■ Homes Holdings in
December 1981. Mr Cbetwood is
chairman of the eseaxtive board,
of George Wimpey md a. riirw-tn r
pf Wimpey; Froperty Hoidfaigs. .
■ *
Hr BL W. Mathias has retired
from the board of MIDDLETON,
FOSTER, ANDERSON & CO.
and Mr A. C. L Y. Lombard
Knight has been appointed a
director:'''
NORDIC BANK, London, baa
appointed - Mr Roy Dave; an
associate director with responsi-
bility for correspondent bank*
ing.- '
. , . '■ . '• •
UNITED ' GAS JOaPPST K EES
has appointed Hr' G. D. Carter
and Mr- J./B. Frauds «HiwtnrB'
of Teddington- Bellows. -
■ ‘ ‘
X BIBBY & . SONS , has
appointed Mr George Helsby to
its board; as ti non-executive
director. - - Mr . Helsby is chair-
man . and -chief executive of
Barnett' d- - Hallamshice Hold-
ings. :
. ESTATES AND GENERAL
.INVESTMENTS has appointed
Mr Peter ■ B. Prowting to
the non-executive chairmanship:
foDowmg the retirement of Hr
John JBL Laurence. Mr Lutencei
who has completed setam^eare
as chairman, has resigned as
chairman and director to con-
centrate on h i s other and
increasing responsibilities. Mr
Peter N. ®eny, -who rranadna as
finance director, also Jjectniies
deputy chairman. Hr Datfg W.
Bloomfield, general manager,
and Mr Roger Doss eft. have
been appointed- to the board; the
former, as managin g director*
. • ■ . *
TDLEETT & BJXEY INTER-
NATIONAL GROUP has pjade
the following appointments:^ Mr'
Ronald Bennett Mr -Ian Gold-
smith and Mr John Graves, have
been appointed directors of
Tullett Riley "• (Currency'
Deposits! Go. Mr - Walter
Bo ml d, Mr David Evans and
Mr David Tnffley, have been'
appointed directors of Tullett fc
Riley. (Foreign Exchange) Co.
* v
-Hr Roy Flatters has been
; appointed marketing director
and Mr John Bishop, se rvice
.’director. of ASSOCIATED
LEISURE HIRE (LANCASTER)
BABC OCK . PRODUCT ENGI-
NEERING* has; been awarded a
contract worth more than £7m
to supply .coal .fired spreader
stokers for the Royal Ordnance
Factory, Bishopton, in Scotland.
The equip meat will be fitted to
four' - Babcock . Power (shell
boiler division) Compo boilers,
each rated at 69,000 Ib/hr at 270
psig and 700 deg. F to supply
steam, to ; existing turbines and
pass out steam , to process
Sir Derek fixra
Sir Derek Ezra has ' been,
appointed a consultant on indus-
trial matters by MORGAN GREN-
FELL AND COMPANY on his
retirement as chairman of the
National -Coal Board. .
X. DONELLY CONSTRUCTION
has been awarded a £610,000
contract by The Anchor Housing
Association to build 36 flats with
warden’s accommodation at
Wythexwbawe, Greater , Man-
chester. - The company has also
been awarded a £545,000 contract
by The Royal. British Legion
Housing Association to build 26
flhts and' warden’s accommoda-
tion at-Swiptbn.
JOSEPH NADIN CONTRACT-
ING Mahehester^based industrial
insulation' company, has won
contracts worth about £500,000
for insulation maintenance work
at the Shellhaven refinery in
Essex and «t CEGB . W-Otington
power station near Derby.
+
Contracts wdrth £150,000 to
provide clean room faculties in
three hospitals have been gained
by the Bolton-based AEROLOGY
CONSORTIUM. -Aseptic units
are being installed at the Royal
Victoria Hospital in Belfast, and
at the Ulster Hospital, as well as
at the . Macclesfield District
General Hospital in Cheshire.
; * •
A glazing contract worth more
than £139,000 has been won by
JAMES CLARK AND EATON.
Hie order placed by ITL It alian^
Lavori of Rome. Italy, Is for the
external- glazing of the Sheraton
Hotel in Baghdad, Iraq.
A contract worth £110,000 to
supply a complete energy and
building management system for
the University of S urrey has
been Ivon by SAUTER AUTOMA-
TION. • The contract covers
installation of the EY computer-
based building automation and
energy management system,
which will provide facilities for
monitoring maintenance require-
ments, fire and security.
■ ■*
OAKWOOD GROUP, via its
civil and : electrical engineering
subsidiary. Clough. Smith, has
been awarded a portion of two
contracts with tie Electricity
Supply Industry. The contracts
which involve cable laying and
overhead lines extend over two
years and are valued at around
£1 Jim.
★
BROCKHOUSE FEVSPA
HANDLING has been awarded
a contract worth around £750,000
by the DoE, for the supply of
steel shelving to. the newly
adopted metric specification.
Deliveries are scheduled to be
made over the next three years.
- *
CAPPER PIPE SERVICE has
won a £667.000 contract for the
installation of mechanical works
at Watneys London, Stag
Brewery, Mortlafce. Capper
Pipe Service, a Capper Neill
company, will be installing 50
plant items and 6,000 metres of
pipework, most of which is stain-
less steel.
* . .
BCC has been awarded a
£700,000 contract from Cable
and Wireless for the supply of
“RAPAC" microwave radio
equipment which will make a
contribution to the Mercury
telecommunications project by
providing “across-city” digital
voice and data communications
— initially in London. “RAPAC”
is a low-power “point to multi-
point*' digital microwave radio
system, designed and manufac-
tured by DCC for Local Digital
Distribution, a joint M/A-COM
and AEtna Life and Casualty
company.
*
HALFACRE AND YOUNG
will construct 11 warehouse/
industrial units at Watlington
Industrial Park. Watlington,
Oxfordshire, under a contract
worth £400,000.
*■
BRITISH BROWN-ROVE RI
has been awarded a £300,000
contract by Walker Engineering
for the design, supply and
installation of the electrical
power and control equipment
for a new coal export terminal
at the Port of Workington. The
terminal will have a throughput
of 2000 tons per hour and will
be constructed for the Cumbria
County Council in association
with the National Coal Board.
The contract includes the
cabling, lighting and electrical
services- ' The plant is expected
to be operational in the late
summer of 1983.
*
UTILICOU has been awarded
a contract worth £183,000 for the
maintenance for the first two
years of the heating, ventilating
and electrical systems of the
Burrell Gallery to be opened by
the City of Glasgow district
council next year.
*
CARSON OFFICE FURNI-
TURE has been awarded a con-
tract worth £172.000 for the
supply of office furniture for
new offices for the British Tech-
nology Group at 101. Newington
Causeway, London. The contract
includes freestanding and
screen-mounted systems furni-
ture, with screens and storage,
for the new building, which Is
expected to open in November.
*
Tbe English Industrial Estates
states that work is to start on the
construction of advance factories
an tbe Mullacott Cross Industrial
Estate. Ilfracombe, Davon. The
project will consist of: eight
workshop units of 1,000 sq ft
each: one workshop unit of L500
sq ft; and two workshop units of
2,500 sq ft each. The contract.
worth nearly £290,000. has been
awarded to CLARKE CON-
STRUCTION, Exeter. .Work
starts on June 28, and tbe units
should be ready for occupation
by December.
*
Channel Four Television Com-
pany has awarded a £83,000 con-
tract to WALTER LAWRENCE
(CITY) to undertake the fitting
out of the entrance hall and
boardroom for the offices at 60
Charlotte Street. Wl. Work has
started and the contract period is
13 weeks.
*
MUIR WILSON INTER-
NATIONAL, Jersey, have been
awarded a contract by HVA
Holland Agro Industries, for the
design of the civil engineering
works associated with the
Khartoum Integrated Poultry
Project in the Sudan. The pro-
ject is located 25 kra south of
Khartoum on the main Jobel
Aulia road and is being carried
out as a turnkey contract for the
Arab Sudanese Poultry Company
which is an operating company
of the Arab Authority for
Agricultural Investment and
Development. Phase one of the
project will consist of the
development of the 2,000 hectare
site for the production of iu.9m
eggs and 2.1m broilers per
annum. The Muir Wilson Inter-
national involvement will include
the design of foundations for
about 54.000 square metres of -
buildings and of the civil
engineering works for roads and
services.
- • t<-. p,. '
U: .
, i. > ,
itorv
-
i -
!,V • •
’ • V,;-;..
• •• ...• .
... .‘n. I
DMffOllIBVnMSOLBUIIHI IHiar
KSUEDCAPTOtL: TC2300300Ofdbi*yshans of Rl each, fully paid.
... O tcamW amended ItemM
■ -■ : ~ =30/8/1982 31/31 1902 30/6/1962
706,000 705000 2320300
SLS87.1 &OOOLS aUHLI
1X1 720 US
SUM 11&3 TVM
OrtraBMft) • - - ^
Gold produced Os) — — —
_ _ „.. M _■ _
. PlicsnaMOUlsl — — . —
fi n nu oW/tnaiwfi
CoBtQVt noted) — -
InftlRftnlU) Ih _ n a.
Rmnn OUOOk) M M
CMC (Moo's) •
~ 10SAM 107,154
- sun sum
Pratt (RDOmd 7X729T
GoU-tihwMrtMtrti:
Oronflted fi)
GoldprodundS# — —
VWdfa
PdoarocaiwciOVka) -
_ 72B)DOO 724000 3JOSJOM-
- 14X141 142040 Anuta*
— . U3 • \Wt‘ 14il
- T1^» 17. 770 ■ 1228D
‘” a ’ ' .. ; * '
1 .. '
.•I . r
.• r Rsvmw Wt iraBad) ~ _ r
. .CostOVt mated)
FWttOMtraBtod)--j-. ••
IteinM M.o mm Ma*
. =•. (teattRoaov - «, -i
■■ MIMA-.' mm mm m. mm
’ ■ " - '
- IfrnthmtOxicto: •
- PWptmiadtd . ~ i- — —
Cbdda pfOducadOcB) — _ _
YnldtksA) - ~
IHAMCULIIESUCrSfROOOV:
. lAfaridmo praAtc Gold '• -
■ Prolh on wto of Utanfami Oxid*
and Sulphuric Add — ~ w
Nut tr&uCB rayultias .apd sundry
TEU* ; ...tTMgrfi ; * j
maw 120O&. ^ - HW» ;'
WW \JKSSOi •;.* WM - !
307400 321JK30 IfiOSJSOO
BASK SXSSff 217,040
. am . 0.182 ,«.w
UM» 764067 - C7455*
. 1,114 Ijm ■ > 7AB*
mining ravarara _ M
27B1
2890 t
H3*2
'Netmhtognwnoe ~ — — ~ .
Nat notwnlnipg rnvnnuo (groupJ_
158,117
19403.
. 160204
' was
082796
88,141
. Profit before tax and Sao'kshara
of profit ______
Tfcx and Stafete Aara of profit _
178306
55302
183*89
106*04
. 7813«0
' 402315
hoflt after tax and ttatels sham .
of profit ______
122716
78*86
" 3S282S
-.Capital expenditure _ _ _ _
DMdanda: ordinary ehaios _ _
“A” shares
. Loan tevyratand (1976)
32356
127,781
17301
16*36
6*56
8332*
-222398
17301
6J56
TUX AW STATFS SHARE OF PBOfTT: In wins of Ifw nwgar of Dm WbsC
DrteftMttvin oodnpanv uri* ihte company, the mining assets of W4«t OrMqdtdn
warosajtilrod by this company sr th« book vslun of R206 nrfltfon.Th« co« of
tMa acquisition ranks- as 'deductible cspftai aatpwidlQirc In the hands of tKa
company. Conversaty. tha Waat.Driafomaln company te randarod Habto tor
mesa* racoopenanc* Hoc on tha «rw amountTlw net efface of ttwtransaction
has bean » reduoe the ao 0**jg** amount payabla in raspoct of tax and
Gtatafc share of profit by coma R38 ntiHion.Tha amount has been brought to
account In Kite quarter. However. Dm ccroiderstJon underlying the nanseohn*'
Is subjeef to review by the Government Mining Engineer and. depending on ■
. lea raHng, the net tax savinBrney require Mine adjustment.
GRACfTOFNEW MflNHG LEASES' As announced Jn the mess on 2 Jufyl382,the
tyUniewrot Mhnend and Energy Afiafrs hai approved In prlndpte the grant of
bath the North Dri e fanwhi tease In respect of an area of approximately 365
benares and e leeae in respect of mi area Of approximately 30 hecarss which
adjoins the northern boundary of the East mine and which has bean held by this
company under prospecting permits with permission to ntineilhe new lease
. a rsesvriflba worked coriotntiv with tbe existing leeae areas of the East mlneand
the Wbatmina.end the co tw o M st e d tease area wriHbeaubjacttp a mdfarm tease.
aorisMenoion from 1 July 1381 celculatad in ecsordence with the existing Ease
jminete foemutei A capital ^ ettowance at the rate of B» simple Interest win be
aflowed in respect of cepItsJ axparidfture inouired In prospecting and mining
. operations In the dev oto pmartantfaxptatotion of thecbnaolldated to ee e ar es .
(nconelderation'for the cession of tits North Drietontain tease from Gold flekfe
Mining and IteveJopmortt Limited to this company, 73S2.000 "A" shares of_Rl
each ■ war e aBonsd on 30 June 1882 to that company and &s nominee end.
'toflowtogpeymeniof tha c£v«endonthe"A"share»,to which reference is made '
behm wch’shares were converted inn 7,362000 fuffy paid onfirwyshsresof
W eech-Tbe tewed capital at the company is now esthavm eboye,
“WVTOOaJS: A iflwd«nd(Na18) of 13Scants(67S4600p) per ordinary ehereww .
declared on 8 June W82. payabla on or'about A August 1982 to membent
- reinstated on 2S June 1582. A defarrod dividend of 23S pent* par "A" share,
equivalent to the aggregate of the dhridands per onfinaty- share .deefarad on
'■» De c ember 1981 aodX June 1962. was declared end pfcd to. Ihe holders of die
‘VC* shares on 30 June 1992.
CAP11AL EXPBMOfTimE: Capital Expentfiture^ for the quarter Tndudes a non-
nxleenruibte amount of R7^62,000 in respect of the acquisition, of the North
Drfeforaein mhung tease. The Unexpended balance of autborisad capital
ONpandtamai 30 June 1982 was Jt»3A mitliorL
(io^S^nalMSIiaR-X: Tha shaft was sunk TOO mttros toa daptfrof 580
. metres below eollac Excavation of38Lewl station is 'm progmeb.
No.5 Shaft- E; Thsshaft wassunk to ■ depth of 3Mm«n»s bstow c<d 1st
Ito-BTerttary Shaft -W: The mxsvsrinn of tha hoodflenr ponion of toe dtsft
atopy* 24 Lewi lie* bam comptetad-Dawdopmant on M Level haa readied ihe '
shaft position and ia in progress on 28and30 Lavetetpwsntetoe shaft poehron.
an Miidnsrv ho atingshstt and Is an sCerrvsthre to the previously
pitumsetl ilespsnjnQ of Nn 0 SubWnfcil ffhirh— Wtr M I mrl. • ~~
lla7Slirt^W:PrB^nBng operations have eormneneteL
Mra m M ^IftvttCOWWlMITED
ttttJEDCAFTCUj 14004000 shares of R1eadtfb»ypeid.
'OKesdsd Okeidtd Vs sr ended
mtmezr stlsnaa mwmbz
GoM; .
On'mttadU i. — — *. - 3MJU0 384000 lAGftOOO
Gold produced ftg) _ — - 43148 Z32&U 113893
Yteld ;iA) „ 7.7 . 80 73
- Price received {ft/ig) M ' l. TUTS 31,825 72282
RevaraieQf/tninsd} — 1835 3477 . 9 VST
CostIR/tntiOed) _ SAKS 07.02 51.72
ftrottOlft mated) w — . 3422 4375 4415
Revenue (Ra08h) *. .
CostlROOM) - —
Pro^{fW0O r s)_
Sf lM
. _ _ 19398
34088 142700
74073 35314
In the annuel reportAtifaa prmdRng peylimits the /eeervM areas I
EaBtOrMoatehir • : ■ ' ■ ■ - ' ;
rttoHfaWin
Tons
S&
Width
Vahia
crag/t
1 . ’’ ..
(000*)
(gftl
(cm].
(om
1 •
.• - '
Vmtaradorp Contact Raaf
220
4.7
1».
ill.
Carbon Laadar
1399
.4.7
115
83
988
Mate Reef
1328
4.7
157
73
1399
Ideal and aaaragaa
12396
4J
163
153
2348
VhstWstootrirc
On behalf of 4»e board .
. . FLA-Rumbridge \
‘ CT Fenton /.
nNAHCMLRE 8 UDrS(R 00 md:-
- Wedkk«pnat:Gohl M «. M .
Wet s un dry revenue ^ .
FTOBt befbre tax and Stated share .
Of profit ' mmm m m w w mm
- ■‘feicjtpd Stated share of profit _
. hptt after laar endiatatok ehaae
- UptaBt; — m. mm mm mm-~
Capital expaodftor* mm 'm. _
. ' Dividend— — . '.J 1 — ml-. '*.
Loan levy rbfund{T975) — ■*.
12325 74011
2353 2017
15378 •» 74429
3328 7.672
42K ’ S3 50 27354.
12J»0 . . 20300
— 790 790
HVDttibtAdrvMend (No.SU of 120cants(Ga39644p) per sham wesdedarad
on BJuno t9B2,paysblo to members on or nbout4Aagu8t1982.
CAPITAL EXPBHXTURE: The unexpended balance of amhorisad capital ex-
pendtairs at 30 June 19B2iMsR1323rniHton.
oeawnONS: The ytoftfhasdedlbwd in rasfronw to lower average vahwspow
prevaWng to tbe underground worir ln g e .
SHAFTS: • , •
. No. 3 Stull; The shaft was sunk 188 mebys to a depth of 871 metres bsknv
collar.'
Mo.X&ibAltefinISfirfcDavelOpmenrworfcaraooBtadwfth tha upper portion
of tbe shaft tetyntonuog.
No. 3 Vujt8aflon Shaft: The shaft has bsan rsteetered to its final depth.
P reparations are isxterwayto conoenos stipiogand Iteing the shaft to tefinal
dmenstoew.
ORE RESBIVES XT 30 JUNE1982: The dslaSod ore reserves vril be published In
the annual rapaflLAnha prsnuCng pay lindt of 42 grams par ton the rasoves
era as follows:
Ctesdfication
Tona
Carbon Laadar
MafatRaaf
2184300
1,112000
Total aadaveragas
4392000
WMth
,vuue
cnig/t.
(cm)
IgA)
109.
113
1,19*
118
102
1,181
no
103
1,188
6 July 1982
Oh behalf Of tha board
RRjSSSi }:“*toro
TCinH^OSTGOiBI^NaCflMPmUPii™
ISSUHJCAPrDO: 5366300 sh«M of RloadvfalVpaid.
Qtr.'ended Ocr. sndtuf Year ended
38/5/1392 3V 31 1382 20/8/1982
OPBM™GBE8 UUBs '
Gold:
OremUedft) 3J3JB0O 375.000 % 474300
Gold produced (hg) — 13222 1*35.1 8C120.1
Yield (g/t) _ 43 4.1 42
Price received (R/kg) _I - - 11384 1JJ379 12249
nsvemteWftmffled} B241 4415 5038
Cost IR/t milled} _ M n - 4885 4423 4532
Profit (R/tmifled) «, «. ^ — „ - 835 X82 548
Revenue (ROOOb] « „ 1 „ '19354 18*30 75,142
CostmOOOi) -17372 18962 87397
Profit (ROOffe} ™ 2jBK£ 1*68 2045
RNANC1AL 8«tiCTS {ROOO’s):
WerWng profit: Gold-. - 2382 1.488 &045
Profit on seta of pyrit* „ 176 121 511
StaTO assistance _ _ _ _ 141 IMS 1336
Net sundry revenue — «. mZ 'mm 331 1*88 xjril
ftofit beforotae j. 1330 3*35 13383
Tta(notMnWng}_. 452 ■ SIS 1JB8
Profit after tax r 2 3». 3.170 12337
C ap it al axpenr fl tura \W 1*83 5396
Dividends ^ « 1777 — 434S
toankvy refund H3M) L. m, . — U* W
• WVBJSflHA rfiwWendfNaMlofSG cents {27^S170p] par ^taro was dedarad on
8 June 1981peyeble to members on or about 4 August 1982.
1 CAPITAL EXP9BXTURE: The unexpended bslsnee of aothorisad capital n-
", pendbura at 30 June 1982 was R123 million,
OPHMTlOteS: Un*scpectedlY high values vwro onooumerad in certain stops
penate on the Whumdaqi Contact Rwrt horiwn during thequirter.
MlDtJS.Vl _0 PROJECT: Bccauao of the prevailing economic conditions, work
has been wapendW in tha Mdtttvtei eras.
ORE RESatVES AT30 JUNE 1982: The detailed ore rasarves wffl bepub&hed
to tbaannualreporLAt the provalHng peyHmlt of 44 grams par ton tha reserves
sress follows:
Main Beef
fteafendevareges
store I
Too*
Width
VUus
ang/t
(cm)
(aft)
4383300
IS*
53
882
1383300
ICO
73
1332
6408300
158
*■’
952 .
ejwy«82
6Jbfy1982
Onbahntf of tbeboeal
JUNE QUARTERLIES
All companies mentioned are incorporated in the Republic of South Africa
KLGff^in^GraFftHTUnTED
IBSOB) CAPTIAL: 30340300 shares of Rl nac±i,fuUy paid.
OPERATING R£SO£TS:
Gold: '
0 remitted (tj _ _ M ^
Gold produced (kn) „
Yield (g/t) „
Price received (R/kg) _ •«,
Qtceaded Ottendbd Year ended
30/8/1882 3113/1383 30/8/1982
470.000 . 424.000 1381300
83963 . 42820 28376.1
143 148 148
11315 11*14 12315
Revenue (R/tmiBod) 17037
CDSt(R/tmBledl mm mm m. mm 8137
Prdfft (B/tntiBed) ^ - -
Revenue (mOBh) « M .
COSt{R000V m, mm mm mm mm
Profit (moo's) - mm mm mm mm
HNANCUU. RESUCTS (ROOD'S}:
W u r ting profit: Gold—
Recovery under lose of profits
insurance— — — . — — „
Net sundry revsnuo — — _ ~
Rofit before tax and StaTOs share
of profit _______
Isx imd Srstn's share of profit —
-Profit eftar lax sod StetdisaiisEe
of profit ______
Ca pital e xpand! turn — mm mm m‘
Dividend— . — •
.LoanlavyiefiigdilSJB) «.• _ — .
10210
110.18
12*86
80312
. 74*iO
348349
2203*
27*62
102910
51378
46*18
^32739
48713 238738
B8JS8 332*13
37*80 1433*0
28,138 178393
74698 • 37336
— • 81366.
SB8
DIVlDHlID;Adrv!ttend(Ne.2S) of^ ISO cents t753S5SSp)penh* raws declared
on 8 June 1982. pay shte to members on or aboutdAu gust T9B2.
CAPflAL EXPENDflUIC: The unexpended balance of authorised capital ex-
penditure at 30 Jtaw 1982 tm R2143 million. .
PRODUCTION: As reported In ihe press on 4 May 1982, an underground fire
was discovered in the 55 LungwaH on 3 May 1982, which resulted in the
temporary cassation of mining operations in the longwaU and in the whole of
the southern area of the mine above 24 LaveLTho affected area, which was
sealed oW, has since been re-opened.
SHAFTS:
No .3 Sub-Vertical Shaft: Theahaftwaa sunk 132 ipMrss to a depth of 34S metres
below collar. 35 Level station has bean cut.
No. 3 SubAfertiaaf Ventitetfon Shtet The shaft was sunk 135 metres to ■ depth
of 253 metre* below co tot
ORE REBBIVEB AT 30 JUNE19BZ: The debtilad ore raaatvas vriti bo puWiihed in'
tha annuel report At the prevailing pay limit of 6>4 grams per ton the reserves
ere es follows:
CtassBfcstion
Tote) end av era ges
CJuVWZ
Ton*
Width
(cm)
Value
(g/t>
CtTLB/t
2482000
1*7
203
2014
198300
188
10 J
1390
2881390
149
283
2380
On behalf of the band
C.T. Fenton 1 ■. i . . . ■
P.fLJanfsch J tWaatv *
ffiSLKRAAL GOLD MINING COMPANT UMRED
ISSUED CAPITAL: 89340,000 shares of 20 cents eech/ftjDy paid.
J0PBIMM8 RESULTS:
GoW;
Ore mated ft} _ _ _ _ _
Gold produced (kg) _ _ _
Yield (g/if
Price received (R/kg) _ _ _
Revenue {R/t milled) _ _ _
Cost (Ff/tmti lad) ' _
Profit p/t rritodfr: -
Revenua fROOffs) _ _ _ _
Cost (ROOD'S) _ _ _ _ _
. Profit {kooou '
Ota: ended
30/8/1382
Ob: em/a d
311311383
18 mont hs
ended
301611882
1381300-
4S12J
43
■12.485
215
589
330
19470
17*67
106344
. -M40*
15697
82212
2088
1*55
11492
2086
7*55
1*432
822
829
3391
FMANCUL RESULTS (ROOtfl):
MxMng profit: Gold— M _ —
. tlatnundiyrevwmo _ _ _ _
Total Pratt
. Capital expemfiiure — —
Loan levy refund (1975) ~ ~ ~
CAPITAL EXPENDITURE: The unexpended balance of authorised capital ex-
penditure at 30 June 1982 Wes R383 m'dlian.
NO.1 SWVBTT1CAL SHAFT: Preparations fo r the do epanirtg of tha shaft were
Commenced during the quarter.
ORE RESERVES AT 30 JUNE 1982: The delated ora rasenna will be published-
Inlho annual reporLAtthoprevailinB pay linut of 5.1 grams per inn the issaives
an as follows:
Owri&catbo
Dse&raellW
’hMatasdsmrages
6 July 1962
Tbns
Width
fcm)
VUue
fart)
cmgft
875300
16*.
73
1.155
254300
17*
24
1 , 1 U
1,120300
150
73
1,181
On behalf of t he b oard
C.X Fenton T . .
RfUaiHCh J L “* ctans
1JBAN0N BOLD MNMB COMPANY UHTEB
ISSUED CAPITAL-. 7337300 shares of Rl nach, felly paid.
attended attended Y ea r ended
30/8/1912 3113/1382 30/6/1982
OPERATING RESULTS: '
Gold:
- Ore milled IQ _ _ 420300 420.000 13*0300
'Gold produced (kg) Z3B4A 2JB14S 10324 O
Yield (n/ti — 64 62 62
- Price received {R/kg) T1309 11.756 12357
Revenue (R/t rmHad) 73.73 7X35 7822
. Cost (R/t milled) 4438 42.80 42.15
Profit (R/t milted] 2945 30*5 3407
Revenue (ROOT*) _ _ 30355 30808 128354
CostIROOOfe} 18388 17*76 70317
Profit (ROOD'S) _ 12367 12*32 57337
mANClAL RESULTS (raws):
Working profit: Gold— „ _ _
Natsurufry revenue ____
Pro fit brfo ro tax end State's share
Of PlOflt mm m. mm mm mm mm
Tex end State's share of profit— _
Profit after tax and States share
of profit ^ mm mm mm mm mm B mm
' Capital expenditoro _ _ _ „
Dividend—
Loan levy refund (1375) _ _ _
DlVDeilO: A dividend (Na 63) of UO canto (7046200) per sham was dedarad
on 8 June1982.paysbte to members on or about4 August 1982.
CAPITAL EXPBfiXIUREt The unexpended belence of authorised capital ax-
pendHura at 30 June 1982 was R153JD million.
SHAFTS:
No. 4 Shaft: FuU-scate sinking commenced at the beginning of June and the
shaft was sunk 57 metres to# depth of 1T7 metre* below collar.
No. 4 Sub-Vsrtical Shaft: Equipping of the shaft and the changeover to
permanent hoisting arrangements era in progress.
No. 4A Service Shaft: final praperimons for commissioning the shaft ore in
progress.
ORE RESERVES AT 38 JUNE Wb The derailed ore reserves will be published
in the annual report. Aube prevailing pay tumt of 43grams per ton the reserves
are as follows:
CtaseHfestion
Main Rear
Hsburg Reef
10 m barley Reef
Ttelasl wn ii i
BJuly-1982
Ton*
width
(cm)
Value
IgA)
Cm. g/t
2422,000
148
142
2102
2934300
134
62
831
803300
238
U
1490
140,000
152
63
13*9
7390300
1 144
21
U 10
On behalf of the board
P. R-Jantati 1 vcrmti^H.
CT Fenton J »*»>»
VUKF0NTE1N GOLD MINING COMPANY LIMITED
ISSUED CAPITAL: ftOOO30Oshateeof7O ewes each, tolly paid.
ISnaalhe
Qtc ended G tr. ended ended
3B1W98Z 311311982 30/S/198Z
UPSWUNG RESUCTS:
Gold:
. Ore milled:
from surface dumps ft) _ _ 118354 102117 808394
from outside sources ft) _ _ 78346 ’83*63 510,706
total trailed ft) M M 19530O 132000 1.119300
Gold produced (hg) _ _ _
Yield (g/t) _ - -
Price received (R/fcfl) — — _
Revenue (R/t iralled) _ _ _
WbrUngeoat (R/t mUtetfl _ _
Rock purchased (R/t milted) _
Profit {R/t mUed) — _ _ _
Revenue (ROOO’al ____
Wtarking cost (ROM's) _ _ _
Rock purchased [ROW*) _ _
Profit ftOOffi) _
RNANCUU. RESULTS fiWOOW:
Weddog profit Gold
Net sundry revenue —
Pro fit bo fora tax _ — _ ~,
Tex:
Formula tax „ . - - .
Non-mining tax ____
Excess recoupments tax — _
Profit aftert a x
Z3B.T 1327.0
12 13
12200 12396
ISM 14.15
3*5 9.15
328 2.74
Nat recoupments efsorteoaciTAs]
expendiiwe _ _ ~ _
Dividend—
Loan levy refund [1575) « m »
DIVCENO: A dividend (No^of2fl canto I10j066ff7p}p8rtih»ra vw dedaredon
8 June 1S82;payable to members on or about 4 August 1982.
CAPITAL EXPENDITURE: There wsre no captaloxpe ufi l u ro co n n n krnsnto at
30 June 1382.
Onbehetfoftheboard
-6Joly1902
P.RJantadi >
C.T Fenton J “ l * eeB “
NOTE: Copies may be obtained from the United Kingdom Registrar: Hill Samuel Registrars Limited r 6 Greencoat Place/ London, SW1P 1PL
A
UK NEWS - PARLIAMENT and POLITICS
LABOUR
PRIME MINISTER’S QUESTIONS
Intervention in rail strike ruled out
BY JOHN HUNT, PARLIAMENTARY CORRESPOND®!!
KBS THATCHER made it dear
in the Commons yesterday that
she had no intention, now or in
the future, of intervening to
settle the train drivers* strike.
“The handling of that strike
must be left to the board of
BR." she insisted. “ It cannot be
done in this House or at No IQ
Downing Street."
She was replying to Mr
Mic hael Foot, the Labour leader,
who said the board could end
the stoppage by agreeing to the
Aslef proposal to accept flexible
rostering on an experimental
basis in some areas. Mr Foot
repeatedly stressed that tins
was very similar to the original
proposal put forward by the
board itself on June 25.
“ Will you look at the matter
and try to get a proper settle-
ment?” be asked.
Mrs Thatcher also pinned
some of the responsibility for
the strike on the Labour Party,
whose attitude, she implied, had
encouraged sudh action.
“ What we can do is lay down
an important principle,*' she
said. "It is totally wrong, as
the Labour Party has frequently
done, to try to encourage unions
to believe there can always he
more money without more effi-
ciency and proper work
| % • ::
+. ’ ‘* v ,f \ vv;j
Norman Tehbit: denounces
"murdering of jobs”
methods."
Earlier an equally tough
stance has bran taken by Mr
Norman Tehbit, the Employ-
ment Secretary. Sir WiUiam
Clark (Con Croydon South) told
him that the "stupid strike"
would only lead to increased
unemployment
“The action of some union
leaders is industrial suicide and
will only mean they are acting'
against the workforce they are
supposed to represent,” Sir
Wiliam said. ’
Mr Tebbit replied: "The
leaders are not committing
industrial suicide. They are
murdering the jobs of their
members and their members
will remember it.”
In Prime Minister's Question
Time, Mrs Thatcher said the
country wanted a railway
system of which it could be
proud. There was considerable
investment going on in BR,
something like £3bn since 1076.
Last year alone £3 50m had gone
into the rail system.
“ If investment is to con-
tinue on anything like that
scale we must be sure it will
secure a proper return," die
emphasised. "We must there-
fore have excellent productivity
practices and not be dependent
upon those which were agreed
iu 1919. Then there Will be
very much greater hope of an
efficient railway.”
Replying to Mr Foot’s demand
for a settlement an the basis
of the experimental roster
scheme. Mrs Thatcher said:
“The. board has made every
effort to solve the dispute. 1
believe' they are quite right to
insist on the introduction, of
flexible, rostering and right to
insist there . cannot be any
more money without greater
efficiency.
“I leave negotiations rightly
to the BR board. The Govern-
ment has stood behind, the
board in these negotiations."
The Prime Minister’s reply
brought derisive cries of
“ Chicken, chicken " from the
Labour benches.
Mr Tim Smith (Con Beacons-
field) said that Mr Ray Buckton
the AsJef leader,' stated on
radio yesterday that we were
supposed to be living In a
democratic country. "Isn't it
time he introduced a little
democracy in his union and
consulted his members about
this damaging dispute?" Mr
Smith asked.
. The Prime Minister told him:
“ A number of Aslef members
have made precisely the same
point A considerable cumber
of them are now working
because they give more im-
portance to serving the travel-
ling public than insisting on
increased pay without improved
work practices.”
Callaghan urges removal of Nott
BY IVOR OWEN
THE LABOUR PARTY'S
policy of abandoning the
Trident nuclear missile pro-
gramme was backed for the
first time last night by Mr
James Callaghan, the former
Prime Minister, when he
called In the Commons for
more resources to be devoted
to strengthening the Royal
Navy’s surface fleet
In a speech which domin-
ated the final day's debate on
tile Government's White
Paper on defence, he advo-
cated a reduction In the size
of the British Army on the
Rhine and a return to greater
emphasis on Britain's marl-
I time role.
Mr Callaghan also lent his
powerful support to the
1 demands for the removal of
■ Mr John Nott from his post
, as Defence Secretary.
i He told the House: “ I shall
not rest until he has been '
I moved from that particular
office and we have someone
| there who has a more basic
I understanding of where
( Britain’s national interests
I are and where our strategic
I role really lies.”
It was not right, he con-
tended, to regard the Falk-
land campaign as a “one-
off” affair when experience
showed that so-called "one-
off” situations could occur
I at almost any time in areas
| of vital importance to Britain.
1 Endurance delay
1 ‘causes worry
' to relatives’
j THE MINISTRY of Defence has
refused to tel! relatives of the
124-man crew of the Falkland®
ice patrol ship Endurance, when
j they can expect to see their
| loved ones, Mr James Callaghan
claimed yesterday.
: Before the Falklands crisis,
1 Endurance was due to be
; phased out and was to have
relumed to Britain in the
spring. But when the Argen-
tine invasion look place,
Endurance stayed in the south
Atlantic, joined up with the
task force and last week was
given an extended life patrol-
ling the area.
Mr Callaghan said in the
Commons that representatives of
families of the Endurance crew
had asked him to find out when
the men would be home.
“They have been at sea con-
tinuously for nine months.
Mr Callaghan said the Defence
Ministry had refused to give a
satisfactory explanation of the
delay to relatives, who were
anxious and worried.
Mr Peter Blakcr. Defence
Minister of Stale, promised to
investigate.
He also questioned the
theory that resources were
not needed to ensure the
safety of the shipping lanes
from north America because
any war in Europe would
almost certainly be a short-
sharp affair lasting only a
matter of days.
Mr Callaghan said he was
reinforced in questioning
these assumptions because of
the fact that Mr Nott had
been appointed Defence Sec-
retary because, unlike his
predecessor Mr Francis Pym,
he was prepared to operate
within expenditure limits set
by the Prime Minister.
It was because Mr Nott
was unable to touch the
Trident programme or cut
the size of BAOR that ft was
intended to secure the whole
of the planned savings in
defence expenditure from the
Royal Navy, with the surface
fleet the main casualty.
Mr Callaghan recalled that
a year ago he had refined to
commit himself on the
abandonment of Trident and
promised to keep an open
mind on the issue.
He explained that be had
taken that position in the hope
that it would be possible to
find the resources needed to
provide Britain with more
balanced forces from else-
where, but he had now con-
cluded that this was not
possible.
The course he now favoured
was prolonging the life of the
Polaris fleet for as long as.
practicable and then relying
on the U.S. to provide the
nuclear deterrent
But Mr Callaghan empha-
sised that he was still opposed
to Labour’s idea of banning
UJSi nuclear bases In Blr tain.
He maintained that the
defence policy devised by Mr
Nott would result in un-
balanced forces with serious
potential danger for Britain's
safety.
Mr Callaghan endorsed the
view that had there been time
for Mr Note's policy to have
been carried into effect It
would have been Impossible
for the navy to mount a task
force such as that sent to the
south Atlantic to recover the
Falkland Islands.
Mr Callaghan criticised the
service chiefs for failing to
unite to oppose Hr Note’s
policies. Instead, he add,
there had been an unseemly
scramble with each of them,
defending his own service.
The navy had come off worst
More details of the Falk-
lands operation were disclosed
by Mr Peter Blaker, Minis ter
of State for the Armed
Forces. He told MPs that
Britain had suffered no losses
In alrto-air combat during the
campaign.
Reporting on the “ outstand-
ing success ” of the Sea
Harrier he said it shot down
at least 28 Argentine aircraft
—about 23 had been fast
modern Jets such as Mirages
and Sky Hawks.
“Even when outnumbered
by a factor -of two-to-one, as
was often the case, Sea
Harriers continued to out-
perform and out-fight the
Mirage and the' Sky Hawk."
Mr Blaker, attributed the
success of the Sea Harrier to
a combination of a highly
manoeuvrable and versatile
fighter, a reliable and capable
missile, the Sidewinder, and
above all, the resoureefuH-
ness, skill and courage of the
young pilots who had fought
In the highest tradition, of
the . Fleet Air Arm.
Together with the RAF*g
Harriers they had accounted
for a total of about 3G
Argentine aircraft in the air
and mi the ground.
Mr Blaker said one of the
most remarkable features of
the operation for the RAF
was the way in which air-to-
air refuelling had 'drama-
tically lengthened its reach.
He cited the Hercules
which had been making a
regular shuttle of immensely
long round trips to the Falk-
lands and to the Task Force
—tiie longest to date had
taken 28 hoars non-stop.
Chancellor urged to resist calls
for increased public spending
BY ELINOR GOODMAN, POLITICAL CORRESPONDENT
THE CONSERVATIVE Party’s
Right-wing yesterday made its
first move in a campaign to
stiffen the Chancellor of The
Exchequer's resistance to
demands for increased public
spending this autumn.
Mr Ray Whitney (Con.,
Wycombe) and one' of the lead-,
ins organisers on the right,
wrote lo Sir Geoffrey Howe yes-
terday claiming that the “great
majority" of Tory back
benchers were behind him in
his determination to "hold the
line and adhere to the Govern-
ment's counter inflationary
strategy."
Another ’big Increase In
spending plans in this year’s
public spending review would,
be said, jeopardise the Govern-
ment’s hopes of progress on
either interest rates or the tax
front, and would thus be
“totally self-defeating."
Mr 'Whitney's letter comes at
a time when Sir Geoffrey is
facing demands for higher
spending from a number of
different fronts within the
party.
In the short term, the Govern-
ment faces a sizeable rebellion
next week unless it agrees to
make good the 5 per cent cut
in the real value of unemploy-
ment benefit
In the longer term, the
Treasury faces a much bigger
problem over demands from
Mr John Nott, the Defence Sec-
retary, far an increase in the
present 3 per cent growth tar-
get for defence expenditure.
In his letter yesterday, Mr
Whitney said that at present the
Treasury appeared to be under
even heavier pressure than
usual to increase public spend-
ing. Clearly, the Falklands
operation bad created a need
for additions to the defence
budget and equally cogent argu-
ments could be found for
restoring the 5 per cent cut
in unemployment benefit.
But most back benchers
recognised. Mr Whitney claimed,
that there were other priorities
for the Government’s financing
which were almost certainly
more important from the point
of view of getting the economy
right. These included cutting
faxes, and helping to reduce
interest rates.
"I hope therefore that all
our colleagues will accept that
to relax our strategy now would
be to throw away all hope of
restoring our economy to
health."
The organisers of nest week’s
potential rebellion over unem-
ployment benefit believe that
as -many as 22 Tory MPs may
be prepared to vote against the
Government if the amendment
relating to the cat is called.
Technically this would be
enough to defeat the Govern-
ment. but the MPs acting as
unofficial whips for the rebels
fear that in the event there will
be enough absentees on the
opposition side to save the
Government.
Du Cann backs idea of provisional budget
BY PETER RIDDELL, POLITICAL EDITOR
J THE COMMONS should be
> given the power to alter the
I balance of public expenditure
within the proposed totals for
1 each Whitehall department. Mr
j Edward du Cann. chairman of
! the all-party Treasury and Civil
; Service Committee, aigued last
; night.
i Mr du Cann was giving evi-
: dence to the Procedure
(Finance! Committee of the
! Commons which is investigat-
: mg possible changes in the way
• that taxation, expenditure and
■ bor/owing proposals are con-
1 sidered by Parliament,
j He was arguing in favour of
proposals lo have a provisional
budget in November ahead of
the normal spring budget, to
t allow time in the interim for
the select departmental com-
mittees of MPs to make detailed
recommendations about the
Government's proposals.
Mr du Cann backed existing
constitutional practice whereby
back benchers cannot recom-
mend an increase in public
expenditure overall or higher
taxes. His view was that the
specialist committees should be
able to recommend changes
within the global totals for eacb
Whitehall department — more on
prisons, for example, and less on
immigration.
But there should be no scope
for increasing global budgets for
any individual department,
though the committees should
be allowed to recommend cuts
in the overall budgets of parti-
cular departments.
Members of the procedure
committee, which is chaired by
Mr Terence Higgins (C, Con
Worthing) questioned him
about the detailed implications
of these proposals for the way
that the Commons works, in
particular whether there would
be an overloading of existing
committees and of MPs’ time.
Mr du Cann stressed that the
first priority was to ensure that
the Commons exerted greater
influence on tile way that
public money was raised and
spent.
Edward du Cann: greater
influence for MPs
In an earlier speech yester-
day; to the American Chamber
of Commerce, Mr du Cann
tried to (inject urgency in t^ie
campaign to secure reform. He
said there was “a brilliant
opportunity m this parliament
to effect reform." Establish-
ment of the new select com-
mittees had made a “ notable
■impression ” but were only a
beginning.
“ The real test of parlia-
ment’s determination to get its
bouse in order in accordance
with its historic duty is whether
we shall, in the next two years
before the general election,
reform our budgetary process
in the way in which some of
us on the back benches are
determined upon.”
Mr du Cann laid particular
stress on the fact that Govern-
ment's expenditure proposals
were presented too late for
the mto receive proper analysis
by MPs before they were put
into force.
" The estimates are too com-
plex and illogical in their form
to allow proper analysis or
variation at the option of MPs
and MPs are virtually excluded
from exercising any influence
over the strategy, which
directs Government’s proposals
relating to revenue.”
Compulsory
‘belt-up’
likely
next year i
By Our Political Correspondent
WEARING OF seat belts Is now
almost certain to-be made com-
pulsory by next March at the !
latest The Government yester- \
day laid before Parliament the |
draft regulations making the I
wearing of seat belts compul-
sory for drivers and front-seat
passengers in cars and light ,
vans.
The regulations will have to
be approved by both Houses of I
Parliament and will meet con-
siderable opposition from a
vocal minority of members. But
they seem almost certain to get
through.
The safety lobby at West-
minster has been trying to make
seat belts compulsory for almost
ten years. Last July, during
the debate on the Transport
BUI, tiie Commons voted in
favour of the principle of com-
pulsion by 221 to 144 votes.
The Transport Act gave the
Government the power to make
the necessary regulations and
last December the Department
of Transport issued its proposed
regulations.
After discussions with in- .
terested parties these have now
been amended to allow some
extra exemptions. Taxi drivers
will be exempted, together with
qualified drivers accompanying
learners who arc reverting and
driving examiners. Exemptions
will also be made for drivers
and passengers in carse with
defective seat belts.
T5e Commons will probably
vote on the regulations before
the summer recess. The vote
in the- Lords will probably take
place in September. There will
then be 23 weeks before the
regulations come into force.
Noble lords
invited to
pub crawl
LAUGHTER broke out- in the
Lords yesterday When Min-
isters were invited to a pdb
crawl in the cause of research.
The call came from LORD
CHELWOOD (Con) who
wanted a Gov ernm ent spokes-
man. LORD LYELL, and bis
ministerial colleagues to see
for themselves the varying
measures of wine sold by the
glass.
Demanding Gover nm ent action
under the Weigits and Meas-
ures Act, to bring in new
regulations on wine sales, he
said the Ministers should
"come on a pub crawl with
me so that I can show them
the error of their ways.”
Lord Ghelwood pointed out that
the British drank 105m gal-
lons of wine last year.
Lord Lyell agreed that the
Government was looking into
reasonable ways of achieving
regulated sales of wine by
the glass. “It does require
much consultation and it is
difficult to obtain a reasonable
measure of what constitutes a
disabled
DISCRIMINATION against dis-
abled people is just as big a
problem in Britain as dis-
crimination on grounds of ,
race or sex, Mr Jack Ashley
(Lab, Stoke on Trent South)
said - in the Commons i
yesterday.
He won MPs’ approval for the I
introduction of a Bill to out-
law unjustifiable discrimina-
tion against the disabled, but
the measure is unlikely to j
become law because of j
shortage of parliamentary I
time.
Mr Ashley said far too many
disabled people were suffer-
ing from a denial of human
rights and were -being bur-
dened with the duel handicap.'
of their di$ ability and totally ■
unjustifiable discrimination. !
They were told by other
' people that they should stay
at .home and sometimes re-
ceived the sack because work-
sites did not want to work
with them.
Jobs loss fears
boost youthful
BY OAY1D GOOOHART, LABOUR STAFF
FROM the far end of the plat-
form they looked like any group
of teenage train-spotters. On
closer inspection, the young lads
gathered round- the driver’s cab
turned out to be an Aslef flying
pocket
Most were drivers' assistants
in their late teens — “The ones
Who are going to lose their jobs
if flexible rostering gets in,” as
18-year-old Mr Rick Morgan put
it.
They failed to persuade Mr
Paul Padgett, the driver, not to
take his train from Charing
Gross to Hastings. “I like -driv-
ing and I need the money,” he
said tersely.
But the pickets remained
confident. “We persuaded one
driver down at daphara
Junction not to take bis train
out earlier today,” said Mr Steve
Forey, secretary of the Aslef
No. 1 region council in London,
The group said that billboard
claims of “ growing rail revolt ”
were nonsense.
“There may be more trains
running compared to Monday
but they have just got fewer
drivers working longer hours,”
said Mr Steve Good, 24-year-old
assistant branch, secretary at
King’s Cross.
None of tbe young pickets
could contemplate a collapse of
the strike. “ Almost the only
ones going in are the old guys
with only a few weeks service
left,” said Mr Good.
That was certainly true of the
driver from Leicester — anony-
mous of course — who was
| keeping a few travellers at St
Pancras happy. Hie did not
claim to be working out of any
great point of principle.
“ I have got only three weeks
left and anyway Ray Buckton
does not pay the mortgage," he
said adding, that more than half
of Leicester branch’s drivers
wanted to work — and did not
really care if it meant the death
of Aslef.
Most of the drivers taking an
Increasing number of trains out
of the capital yesterday were
not based in London, where the
union remains pretty solid.
Kings Gross is a particularly
militant centre, as I discovered
in the local BR .staff club whore
a group of drivers demanded
my immediate expulsion from
the dub on discovering I was
a journalist.
The young pickets were more
approachable at Charing Cross
as they sang their “anti-scab"
song to- a bemused Swedish
journalist and any commuters
who cared to listen.
Hie final refrain was a dear
warning to any working drivers:
“He thinks, he’s patriotic, he
•thinks he makes the country
tick- But he'll have to under-
stand that from the union He’ll
be banned . . . he's a blackleg.
He’s a scab ...”
They then reverted to the
cruder “We hate flati-roster-
ing ” and went off to picket the
extra coaches being laid on_at
Victoria coach terminal for BR
Sealink passengers.
Before leaving, they explained
in detail why flexible rostering
would mean 4-to-12-hour ^days
and not the publicised 7-to-fl
hours.
Mr Good also explained that
so many rail' agreements hinge
on each other that if the union
gives way on the eight-hour day
everythin else-such as single-
manning and no restrictions on
mileage— would soon flood
through.
He also predicted that with
30 per cent of drivers retiring
in the next five years BR would
soon be dying out for more
drivers.
There was anxiety behind the
strike euphoria. Mr Rick
Morgan. IS, said: “ If I lose my
job because of flexi-ro storing
ni be too old to get an
apprenticeship anywhere' else—
so we’ve got to fight on this
one.” They were all convinced
that the new rosters would
mean up to 10,00(1 job losses in
the next few years.
Nick Garnett writes; Train
drivers at Bury and Bolton
became the first two Aslef
drivers to dedy their union
yesterday following meetings at
the two depots which voted to
resume normal working.
The ten-station 9Hnile route
between Bury and Central
Manchester was the first in the
eo untry in the present dispute
to offer a virtually full service
throughout the day.
More than 100 trains ran
between - Victoria. Station,
Manchester and the small
industrial towns dose to the
Pennines compared with the 132
trains scheduled daily on the
route
Drivers at the Bury depot met
late on Monday following a
meeting with local management
and took a majority vote to defy
their union instruction.
Some drivers who had voted
to continue the strike accepted
the decision and operated trains
yesterday. British Rail said it
believed few drivers had
dedded to continue the strike.
Out of the 29 drivers based
at Bury, a proportion of whom
British Rail say are NUR
members, 18 were working
yesterday.
The 18 drivers based at
Bolton also voted- to work
normally. Nine were doing so
yesterday, including, it is
thought, one Aslef branch
officii.
British Rail's. Manchester -
division said it was running 200
trains yesterday compared with
70 on tire previous day.
Only 33 drivers were
reported to be working.
“I understand there are two
measures, the Anglo-glass and
ihe Euro-glass and the Euro-
glass is naturally considerably
larger than the other one."
Lord Lyell said he would We
grateful to accept the invi-
tation to a pub crawl, “but
in a purely personal capacity.
I would not wish to commit
the Government in any such
findings.”
Cheers greeted LORD DER-
WENT (Con) when he asked:
“Is it not patently clear tins
is one of the most important
questions that has been put
before your Lordships?”
BARONESS TRUMPINGTON
(Con) asked if sherry was
being investigated. “British
Rati serve 14 glass of sherry
out of a bottle, which is the
equivalent of over £13 a
bottle?" she said to gasps of
astonishment
Lord Lyell told her: “You are
extremely lucky if you can
obtain sherry on British Rail.
I congratulate you on your
eood fortune.
LORD ARDWICK (Lab) com-
plained of -the “ elastic 1
restaurant carafe." It could
vary from a niggardly half
litre to a dangerously gener-
ous full litre. ”
Ashley Bill
would aid
Acas to see Fowler
after NHS union talks
TUC HEALTH service unions
yesterday called on Mr Fat
Lowry, chairman of the
Advisory, Conciliation and Arbi-
tration Service to intervene in
the eight-week-old National
Health Service dispute.
After 2} hours in which the
unions outlined ' their case, Mr
Lowry agreed to make a
renewed approach to- Mr
Norman Fowler, the Social Ser-
vices Secretary, to find grounds
for reopening negotiations on
the NHS workers? 12 per cent
pay claim.
Neither side appealed opti-
mistic last night about com-
promise proposals that would
re-open talks. . .
At the weekend, Mr Fowler
offered new talks if the unions
called off their strike action,
which has included four one-day
stoppages and selective indus-
trial action by individual gro up s
of hospital workers.
But Mr Fowler made it clear
that the Governmenut was not
prepared to improve on its latest
offer »f 7.5 per cent for nurses
and 6 per cent for ancillary staff
and other grades.
Mr Albert Spanswick. chair-
man of the TUC Health Services
committee and general secretary
of the Confederation of Health
Service Employees, said Mr
. Lowry bad not given any indica-
tion a* to whether farther talks
were possible.
Mr Spanswick was insistent
that the' TUCs_ decision to seek
the intervention of Acas was not
an indication of weakness on the
part of the unions.
"One has got to build a
bridge end realise that we are
responsible people, and we
have regard for patients, the
public and our members,” he
said.
EarHer tMs month, Mr Lowry
— acting in a personal capacity
— attempted to find grounds for
renewed negotiations.
The TUC Health Services
committee has already
announced a three-day period
of “ Intensified - industrial
action” for July. 19 to 21.
On Monday, general secre-
aries, representing eight unions
with members in the NHS,
agreed during talks with Mr
Len Murray, TUC general secre-
tary, ’that .vigorous attempt®
would be made to escalate the
industrial action to include
workers outside the NHS.
Industry
adapts
to life
without
railways
By Jim McDonald and
Lynton McLain
INDUSTRY and commerce
appeared, yesterday to be
adapting Itself, without too
much anxiety, to life without
railways. ....
There are Few commodities
which cannot be moved by
road, as British Rail has dis-
covered in recent years. Much
of industry had already made
alternative road and air trans-
port arrangements In advance
of last week’s short-lived
strike by the National Union
of Railwaymen. These
arra ng ements have come into
effect this week.
Heavy steel sections are
dependent on rail transport
and so are ore and coaL But
the Central Electricity
Generating Board has good
stocks of coal and the weather
is keeping domestic consump-
tion low.
A lengthy strike, however,
would have a “knock-on”
effect on stockpiling for the
winter, the Confederation of
British Industry said yester-
day.
OH companies have
switched scheduled rail
custom to road transport But
certain chemicals depend on
movement by-rafl.
Many companies, said the
CBI yesterday, ' had made
arrangements to stagger
deliveries and collections of
freight by road.
It may or may not be indica-
tive of industry’s reaction
after the first three days of
the strike, that it was not
even mentioned, yesterday at
a meeting in London of the
CBFs smaller firms council,
where the state of trade was
on the agenda.
Car sharing
In London, of all Britain’s
major dries. Is most depen-
dent on a suburban rail net-
work for commuter transport.
But with the Underground
service operating this week
and the growing use of car
sharing and staggered hours,
there has been high atten-
dance in offices and factories.
The London Chamber of Com-
merce and Industry has
surveyed about 50 companies,
large and small, this week.
Attendances on Monday
averaged at least 90 per cent
and the Chamber believes it
was even higher yesterday.
Some banks and other large
companies have made hotel
bookings for essential staff,
but this Is expensive and
there has been increasing use
of coaches. One company has
hired cars for staff members
to pooL
Few companies reported
serious difficulties in move-
ment of goods.
The National Coal Board
received unconfirmed reports
yesterday that “ a certain
amount of coal was moving by
train.” In spite of the strike
by the majority of train
drivers.
Seventy per cent of the
NCB’s annual output of 120m
tonnes of coal usually goes
by rail with 82m tonnes i
used by power stations.
Yesterday there was
effectively no bulk movement
of coal, tbe Board said.
Order books
The NCB h«s spare
capacity on Its stocking land,
able to take a total of 21-
weeks of coal production.
The British Steel Cor-
poration has felt little effect
of tite strike by train drivers
so far. This is largely because
most BSC plants are working
at only 75 per .cent of
Installed capacity, with much
reduced order books- and 'some
steel products going by road.
"The effects of a prolonged
strike on tbe steel corporation
are also likely to be mitigated
by the start next week of tbe
annual two-week holiday
shut-down at works throngh-
out the country.
At some BSC plants, steel
workers are likely to be asked
to take a third week of their
annual holiday to allow plants
to remain closed if the strike
goes on for weeks.
Mersey dockers call Rig catering
quayside meeting f£L,t
THE 250 Birkenhead^ dockers
who are refusing to cross the
Mersey to work in Liverpool will
bold a quayside meeting this
morning.
Shop stewards are to give a
report on the outcome of talks
into their claim for £1,500 conf-
pensatkm for upheaval and ®u
annual travel allowance of £9p0.
The dockers are employed by
the Mersey Docks and Harbour .
Company, which has dosed its
.cargo-handling operation. . at
Birkenhead on • economic
grounds. They company has.
offered the dockers a travel
. allowance for only tbe first four
weeks after the transfer, which
r.imc into fair? on Monday.
The dispute remains confined
to workers in Birkenhead where
no ships .are involved and the
rest of the port worked norm-
ally .
. Meanwhile day-long talks
were held by the Port, moderni-
sation committee on the annual
pay and conditions award for
the Mersey dockers. The award
should have been implemented
on May JL . .
No statement ™ issued, but
negotiations will continue with
both the port employers and the
transport workers', ratio n now
anxSous to reach a settlement
. One of the major outstanding
i^ues is on flexibility of flic
number of men tn a working
mne.
fly Brian G room, Labour Staff
THE THREAT of a strike liy
600 North Sea catering
workers, which could disrupt lfi
on rigs, has been delayed for
three weeks.
Shop stewards agreed vested
day at a meeting in Aberdeen
to put. to members without a
recommendation a 7 per cent
pay off er cm basic rates and
offshore allowance, with some
improvements in working con-
ditions.
A strike was planned origin-
ally- to start on Sunday night,
hut the offer was raised from
6 to . 7 per cent after interven-
tion by the Advisory, Concilia-
tion and Arbitration Service.
The unions had claimed 12 pc**
A-
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Fina»tiaL Times Wednesday July 7 1982
13
Wednesday, July 7 1982
A slow growing world economy
has forced France’s Socialist ’ ■
administration to devalue for a
second time and introduce .wage
and price controls. The lohjl
term policy of rebuilding French
industry through massive
investment remains^ however. .
Govemmeiit makes
in popalarity as a res®3t of die
second devaluation of the
French franc in Jane and the
cot in fiviog standards that is
In. prospect as a result of the
current four months prices and
wage freeze The question now
is whether it has fully taken on
board the unpleasant econonac
realities of a slow grtramg
world and is striking, oat ifi yi*
in die Tight direction.
BY DAVID HOUSEGO
IF YOU hare not been in ttfTee for 23 years, ^stakes
i are easy to make. .The Socialists, who took office in
May hist year not really expecting to win lie President
tial election -and nnprgiared for power, have nude
plenty of them. 7
They .badly misjudged the international, economic
environment. . = They thus brought on theoselves a
humiliating devaluation by reflating their economy
while their competitors were deflating theirs. -.They
engaged’ iii an eventually untenable defence’ of the
franc to the point of depleting France's foreign
- exchange reserves. . . . .. _ ■ . . ; r
They ha&e pfled tip for Uiehir
selves . aai^ unnecessarily . heavy
road of d§>t by fully nationalis-
ing the major industsiai groups
and banks when they could have
achieved/, the same .goals by
seeming Lm^jOTily control.
Finafl£ they sought to create
more jobs by catting bade the
authored week by an hour.
But thep President Mitterrand
decided/i that, employees should
suffer 4o drop in pay from the
ebangef^us dtestaoying the job
creation effects of the measure
while adding to. industry's costs.
Tbe l economic nnsjudgnents
failure to take decisions
have been slow .to catch
the Sociabsts. Presi-
Ctterrand came & power
;e wave of popular syte-
( which he still enjoys)
distaste for the abcasive
of former President Gis*
d’Estamg.
victory resulted from a
zeupation wdth issues of
lployznent, working comm-
and leisure time that did
1 really enter into M (discard'
staiug'S: harsher economic
ations. .. .
. Over fee past year the French
have seen their IMhg standards
continue to rise (both through
increasing wages and substan-
tial runs in social allowances),
holidays lengthened -arid the
working week reduced.' ^
The revolutionary changes
that some expected (ahd others
feared) from a government that
included the Communists have
not occurred (thoudr the rich
are having to pay ecmtideiv
ahly - higher taxes). In
fact among the Left’s sup-
porters on the factory shop floor
there has been impatience that
nationalisation or new rights for
workers have as yet changed
Bataf-
Disappointed
But overall it was probably
true until a month ago that pre-
dominantly bourgeois France
having voted f or a radical
government was — as one
observer put it-— “ content to be
disappointed by the Socialists’
performance.”
Almost certainly the Govern-
ment will suffer a sharp drop
Or wtil it veer from one ex-
pedient to another — ob lines
-familiar to students of Brftain’s
“stop-go” policies— wi* the
risk against the background of
France’s more tiuholeut past'
of a radical emission at the'
muL i
It would be iflce to say that
realism has become the order
of the day in this the “second
phase ” of the Presidency. But
H Pierre Mauroy, the Prime
Minister, has managed overall
economic policy a little like a
bull in a china shop — hinging
first inwards expansion before'
■ lurching back towards a prices
and wages ‘ freeze whose sev-
erity Sue shocked even X
Jacques Dolors, the Finance '
Minister, long a protagonist of
restraint. •
~ M Maundy now has the trade'
unions— with, the partial excep-
tion of the ptthSodallst CFTD
union— against him over the
wages freeze. He has employers
up in arms over the- further
squeeze on already much de-
pressed company profits .'from
tiie prices freeze. The Commun-
ists are uneasy at being, mem-
bers of a coalition imposing
such, unpopular, measures. His
awn . Socialist troops ■ in' the
. National Assembly axe .resigned
to the measures as. preferable
to pushing up .xmempfoymeat
to 3m through the type of fough
deflationary .1 package that M
Haymond Bam, the former
Prime Minister, might have ad-
vocated.
7 ' The major compensation to
the Socialists from the type of
stnbalisatton measures they
have taken are their hopes of
salvaging' their long teem
investment plans for the re-
structuring of French industry —
hopes now entrusted to the sew
Bupennini&txy of industry and
research under M -Jean-Pierre
CBievenemenL
■The new policies however
suffer from internal contradic-
tion. The. - g ov ernment is
attempting : - to ■ bring' down
inflation - . by ■ deflating the
economy — though it resists that
label But at the same time it
wants - to sustain the level of
economic activity to maintain
-employment * and investment
the measures have been initia-
ted by a 'Socialist administra-
tion that is philosophically com-
mitted to consultation and
negotiation. Bat father like the
introduction of the 39 hour week ■
they axe having to be imposed
by legislation that suspends col-
lective bargaining agreements.
The administration hopes that
the freeze will be followed by a
negotiated . price and wage re-
straint over the next 18 months.
But as every country with ex-
perience of it knows, getting ont
of a period of prices and wages
freeze 'is the most difficult
p hase.
Wnl the Government hold out
against wage claims by unions
in the public sector that involve
lengthy strikes? Will private sec-
tor firms Be willing to risk a
loss of market share by stand-
ing firm, against strike action
and a shutdown of production?
The Socialists’ gamble Is that
they can eventually win the
undoes’ support because the
unions have more interest in
working with a Government of
the left and because purchasing
power has gone up sub^aotially
over the last year. But the
consensus in France grows more
fragile, with rank and file
militancy' on the .increase in
industry, racial violence surfac-
ing, in major cities, like Lyon
and Marseilles and the opposi-
tion now ready to pounce where
the 'Government shows signs of
vulnerability.
Controls
The risk is inevitably of a
prices and wages explosion after
the freeze or of the administra-
tion being drawn into widening
the system of controls to temper
new price and wage increases.
A more interventionist regime
would almost certainly be more
protectiimist as welL Failure
of ihe : stabilisation package
would threaten a further
devaluation at the Franc and the
possibility this time that France
CONTENTS
Unions:
unemployment likely to cloud relationship with Government
^ectrontes: MittmTaaaffs weapon for~ the^fntgre _ ~
n
ri
Banks: feadependence under threat
xa
Anglo-French relationship:
econ o mically apart h ut politicall y un ited
m
Chemicals: industry mut ^y irPfniwrfr nfH^n
IV
Steel: further cots on the way
nr
Industry: why the Government has ta ken a leapjn.th e dark . IV
Machine tools: imports mount as sect o r f*U« _to_a dapt
Trade : things will get worse before they get better
Profiles: M Yvon Gattaz, CNFF chief . .
M Edmond Make , CFD T chief
VI
Politics: Left -braced for electoral losses
VI
Economy: GNP falls as economy plans com e nnstne k
Editorial production: Mike Smith.- Design: Philip Hunt.
VI
would pull out of the EMS. On
that horizon France could lurch
to more radical policies.
M Mitterrand has not ruled
out the possibility of fail are
from his calculations. He has
tried to stand back from close
involvement in the management
of economic policy. It is in-
creasingiy accepted that if the
stabilisation package does not
work, heads will fdH in thn
Cabinet
U Mitterrand, -however, has
his eyes fixed on the longer term
and on the rebuilding and up-
grading of France's industrial
capacity through massive invest-
ment. It is a vision located
somewhere between the beliefs
of M Jean-Pi erre Chevene-
ment in a Japanese-style co-
ordination between Industry and
Government and the views of
M Jacques Attali, the Presi-
dent’s economic adviser, who
holds that the market economy
can no longer provide the im-
pulse to the restructuring and
innovation that is needed. In-
cluded in M Mitterrand's vision
is a - nostalgia for the high
growth era of the 1980k
As the problems have thick-
ened so paradoxically has M
Mitterrand looked more serene
and happy in office. Long years
in opposition have . hardened
him to adversity. But either he
has remarkable confidence in
his long term goals (as Presi-
dent for seven years he stands
a chance of being around longer
than any other Western leader
and who can say with certainty
that he is more wrong than Mrs
Thatcher or President Reagan?);
or he Is somewhat out of. touch -
with reality. There have been
some signs of the latter this
year — in the sump tuousn ess
of the Versailles economic sum-
mit; for instance, or in bis
dogged determination to ignore
the run on the franc.
M Mitterrand hoped that his
European partners, as troubled
as he about rising unemploy-
ment and social tensions, would
be more prepared for concerted
European action. That was
unrealistic. Both the British
and the Germans have remained
sceptical of French economic
President Mitterrand: as the problems have thickened
he has looked more serene and happy in office
policy — which has not pre-
vented a renewal of strong
Franco-German ties out of
mutual interest
But M' Mitterrand has good
cause' for resentment towards
the U.S. He came to pftwer
hoping to surprise a conserva-
tive U.S. administration nervous
of the presence of Co mmunis ts
in the Government by the
strength of his anti-Soviet
credentials.
For if there, has been a major
change in French foreign policy
it has- been towards emphasis-
ing greater Western co-opera-
tion over security — as reflected
in both the support President
Mitterrand gave Mrs Thatcher
over the Falklands and In pro-
posing that Nato ministers
should meet in Paris for next
spring's ministerial meeting
which they have not done since
1968.
But he has found (as others
in Europe) the U.S. uncompre-
hending of the damage to
European economies of high
U.S. interest rates and the
strength of the dollar. He is
being pushed further by the
U.S. towards cutting back trade
with the Soviet Union than any
French leader could accept.
He is angered by UB. pro-
tectionist measures over steel
at a time when he is attacked
by the U.S. over French and
European protectionism.
Both the Versailles summit
and M Mitterrand's intensive
international travels this year
underline his Gaullist preoccu-
pation with France’s role and
stature in the world. The sad
fact is. however, that France
will be judged internationally
by the strength of her economy.
It is weaker now that it was
at the end of President discard
d’Estaing’s regime as the 1S.5
per cent depreciation of the
franc against the Deutsche Mark
in the last eight months testi-
fies. These are still early times
in M Mitterrand’s Presidency.
But he cannot afford too many
further economic misjudgments.
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14
Financial Times Wednesday July 7 1982
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SCEI€T€ G€N€RAL€
PRANCE H
Immediate future likely to be overshadowed by unemployment
Unions remain wary of Socialists
"THE SOOAUST experiment
cannot ancceed without the
support of the trade tatam,”
M Jacques Dolors, the finance
Minister. In a newspaper
interview earlier this year. “ H
they prefer a return of the
Right, they hare only to cany
on as they are doing.”
A consensus with the main
union federations — which,
after afl, supported the Left's
ejection effort last year — Is
devoutly wished but the unions
bare afi kept their distance.
Tn an unsettled labour dima te
mu Head by a series of muscular
strike movements, notably in
the motor industry and at the
state-owned bank Sod£t£
G find-ale, the failings of union:
gov e r nm ent teamwork were
acutely shown up by the post-
devaluation wage freeze*
President Mitterrand, who is
said to have staked his Cabinet
on several occasions how it
cane about that the Govern-
ment's relations with the
unions were not better, had
already proposed a ** round
table” discussion. Once the
wage-freeze plan had been
sprang on the unions, the
round table, rather than laying
the basis of an understanding,
ended up demonstrating the
absence of one.
Consultations
The event coincided with the
CGT union congress in Lille.
The leaders of the Conwnmist-
dominated confederation — the
only one in France to have
more »t»n lm paid-up members
— blew alternately hot and cold
on government policies; the
audience of delegates blew
mostly add.
After an in suspicions start,
consultations on a national
level are condemned to con-
tinue through toe period of the
wage and price freeze — and
afterwards. The Government,
which has gone some way
towards satisfying union
demands on low pay, on. work-
ing hours and on workers'
rights, win -have to work out
some balance between "social
justice” and the "acquired
advantages" to which the
majority of unions are fimdy
attached.
Although ...a. . .uranber . of
unionists were brought into the
top staff of Ministries last year,
links between the unions and
the Socialist majority are
tenuous and many in thermions
are suspicious of Socialist
intellectuals and technocrats.
Divisions between the unions,
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which have became worse since
the late 1970s, make matters
difficult for the Government
Unlike the Left-wing political
parties, they are sot bound by
any patched^up formal alliance.
The first Labour -Day of the
Fifth Republic's first Socialist
Government saw aU the unfara
marching in separate parades.
Their conflicting approaches,
were at least partly responsible
for the botched handling of the
reduction in the basic working
week to 39 booze. After a
remarkably rapid agreement on
principles last July, the ques-
tion bad eventually , to be
settled by decree, with little
hope that the measu r e would
lead either to an increase in
jobs or to an approved use of
machinery, as intended.
In the same way the Govern-
ment has been obliged to draw
up a series of compromises in
its legislation on workers’ rights.
On the key issue of workshop
councils or other new forms of
industrial democracy in tiie
private sector it has given the
different partners three years
to discuss the alternatives — in
the hope, once more, of a fruit-
ful initiative from the naiom.
The problems are largely in-
herent in the union structure.
The national confederations
are each more tightly knit than
the British TUC but there are
half a dozen of one.
The unions closest to the
Gov e rnme nt ar e the teachers'
body, the FEN, whose former
leader M Andrfi Henri was
appointed to the Government
last year in the originally
entiled post of M inister of Free
Time, and the CFDT, one of
whose former top officials,
M Michel Rolant, was recently
put in charge of the Govern-
ment’s Energy Control Agency.
The CFDT, with' a more
moderate but also more
imaginative line than the rival
CGT, would have liked to strike
up a privileged relationship
with the Mitterrand administra-
tion. But its dose connections
with one particular Socialist
faction — that -of M Michel
Hocard, the Planning «iwisrtgr
—gets in the way of this.
Its leader, M Edmond Maize,
preaching "a policy of truth
and rigour ” which made him in
the eyes of some- “ more
Royalist titan the King. "
scored a considerable success at
the union’s recant congress in
Metz by securing a solid vote of
confidence and! keeping most of
his leadership team together.
But internal divisions were
also very apparent M Maire
was attacked, far instance, far
watering down - the demand
made at the last congress in
1979 for a 35-hour week with-
out loss of pay. When the
leadership proposed a thres-
hold of FFr 3,900 (£330) a
125r
laoU
HEAL HOURLY
WAGES IN
NDUSTRY
12341234(2341
1979 1980 -«8» 32
month, below which workers
should not lose pay for work-
ing a shorter week, delegates
voted to doable the level so as
to cover some 70-75 per cent of
private sector employees.
As a trade-off agamst any
sacrifices to be made on the
wage front the union is pressr
ing for rapid progress towards
the 35-hour week, for a reduc-
tion in disparities between
different categories and for mi
advanced degree of worker par-
ticipation in the managarngn*'
of he nationalised sector.
One- of the key differences
between its policy and that of
the CGT is that the CFDT does
sot iradgt <m the maintenance
of "acquired rights" as a pro*
condition for any progress.
The CGT, firmly set against
the concept of " austerity," is
hoping to use its tougher line
to strengthen its position, pai^
ticularly in the nationalised
companies.
The organisation has been
going through a crisis of sup-
port. Membership has fallen
well below the 2m-plus which
it claimed fire years ago. In
shop floor elections — which,
more t ha n membership, are the
real test of union influence —
its performance has bean
mixed; but it has lost ground
In many sectors and in some of
its traditional bailiwicks such,
as Renault. After a strike at
Flins, west of Paris, it lost its
majority or the first tune In a
Renault plant.
At the Talbot oar plant at
Poissy — another scene of con-
flict — its bitter opponents in
tiie management-backed CSL
union have lost some ground but
mainly tO the CFDT.
The CGT has paid the price
far following the Communist
Party into its political M ghetto "
in the later years of the Giscard
admin Lstratitm and more re-
cently far its soft line towards
the Polish authorities.
The union itself blames the
drop in membership on the rise
in unemployment Its decision
not to take up the idea, launched
in 1978, of more even leader-
ship, appears to be confirmed by
the appointment of M Henri
KrasucM as the new secretary-
general. a man regarded as a
party hardliner.
The CGT, present above aU hi
the public sector but also in a
wide range of small companies,
is not alone in having member-
ship problems and would bene-
fit along with the others if there
were a union resurgence as
there was at the time of the
prewar Popular Front
While the CFDT lays sdege to
CGT strongholds — particularly
where there are large numbers
of immigrant workers — the
CGT fights back by playing on
CFDT divisions. But in many
conflicts the two find them-
selves side by side.
The gulf between mem and
the moderate unions has, if any-
thing. meanwhile widened. Sus-
picious both of Government
promises and of the prospects
of "direct democracy" on the
shop floor, the moderates now
form a joint front. The chief
among them. Force Ouvnere,
is nominally under ..Socialist
leadership but has always been
wary of global political stances,
concentrating on individual dis-
putes and sticking firmly to a
defence of real earnings.
New openings
The immediate future 1$ likely
to be ' overshadowed by unem-
ployment. Tbe Government
target of stabilising the jobless
rate at around 2m in the middle
of the year and then bringing
it down appears to have bees
missed.
The costly “ solidarity con-
tracts" that are aimed to pro-
vide 100,000 new jeths by the
end of the year have so far
created few genuinely new open-
ings. Of the two proposed
formulas — early retirement
measures or a cut tn working
hours — most companies, includ-
ing Renault, have opted for the
former, which means that theii
total employment remains the
-same.
A senior CGT official, M Renfl
Lomet, has forecast more dis-
putes next year over the condi-
tions far a further one-boor
reduction in the basic working
week. The union will dearly
not be dissuaded from flexing
Its muscles in the way it did
in the recent Citroen dispute.
But with the Communist Party
ba nking on remaining in the
Government alliance at least
until next spring’s municipal
elections, it is likely to seek
no more than limited warfare.
As the leadership made dear at
the CGTs June eopgress. it
wants to keep its bridges with
the administration ope n.
David White
Electronics sector viewed as
‘weapon for the future’
“PRIORITY will be given to
industrial investment and the.
biggest priority of aH will be
placed on electronics. It is our
weapon of the future.” — Presi-
dent Francois Mitterrand. “If
we had to single out one in-
dustry far a concerted develop-
ment effort, that could only be
electronics.” — M Jean-Pi erre
Che vehement, now Minister of
Industry and Research.
The tone of these two re-
marks shows why the Socialist
Government is now preparing to
put its biggest and most
elaborate research and develop-
ment effort in industry into the
electronics sector. The old
policy of highly selective and
limited mvestment-^the so-
called "market niche” approach
—is being abandoned. France is
now switching to a global
attack in the belief that elec-
tronics-based products hold .the
key to the development of mast
of manufacturing industry in.,
tiie future.
This policy is based on a very
broad defini tion of electronics.
Using the new policy vogue
word “l&erc," meant to des-
cribe a chain' of related
processes, a recent report- on
the electronics industry came to
the conclusion that French pro-
duction in this sector amounted
to about FFr 96bn (£9bn) last
year. To reach this figure is
included such diverse activities
as office equipment, measuring
products, telecommunication s
and information systems as well
as base electronics components
and microprocessors.
Work on France's national telecomvwmcations
satellite equipment at Matra, the diversified defence
and electronics group. The state earlier this year
took a 51 per cent controlling stake m the company
Scepticism
The report, p re pared far M
Chevenement, a Marxist-
oriented intellectual and a
highly interventionist Minister,
is to provide the basis for a
development plan which wH5
undoubtedly be tiie most crucial
element in France’s industrial
policy during the current presi-
dency. M Chevenement has
already presented his broad
aims: he wants to posh France
to third position in the World
league behind the U-S. and
Japan, ' increase research and
development spending from
FFr IZbn (Elba) in 1980 to
FFr 20bn (in constant currency
terms) in 1985, turn the trade
deficit into a favourable balance
of FFr 36bn (£3bn) and create
around 200,000 jobs.
In tiie face of considerable
scepticism about these plans, M
Chevenement is resolutely con-
fident that France has both the
financial means and the enter-
prise to nmsde its way into a
much more commanding posi-
tion in tiie world electronics
league. Nationalisation has also
given him the means to support
his belief in the global mobilisa-
tion of the country’s resources.
Almost. 50 per cent of elec-
tronics manufacturing in.
France is in the hands of the
state sector, and 90 per cent of
research-
Nevertheless, as the report
ELECTRONICS 1980
(Frs bn)
-
Prodnetten
%
Market
%
GDP
vs.
668
46
648
45
X5
Japan
228 .
16
164
11
3.7
west Germany _ 83
8
113
8
33
France
74
6
82
6
3.0 -
World
1*450
100
1*450
100 —
Source: Dieli-Fiee.
makes dear, France recognises
that it faces problems of size
against industries supported by
big mar kets like tiie U-S.
According to fihe study, France
occupies fourth place . in the
woadd production league at
present, behind the US, Japan
and West Germany. But its out-
put, at FFr 83bn l£7bn) in
1880, was totally ."dwarfed by
that of the U5,- which. had a
production- off ffEr 668bn
(£56bu) and was. a long way
behind Japan's (FFr. 228bn).
ha addition, ■ the big- French
companies are m u c -h smaller
than their American rivals, and
come wen behind the larger
Europeans, such as Philips and
Siemens, or the leading Japan-
ese like Matsushita and
Hitachi. They are notably
weak in some specific sectors, .
particularly consumer electro- -
nics, mass-market semi-conduc-
tors and sophisticated office
equipment Their strength ties
in defence-related products, pro*
fesskmai electronics -and tele'
communications.
The report suggests four rnalw
reforms ho cope with these weak-
nesses.
• It wonts to see more money
spent in this sector. The broad
target is far & rise of about 50
per cent in real teems, mostly
fip a w dail through tiie already
planned and scheduled increase
in research expenditure.
• ft proposes some reorganisa-
tion of the co mpanies that have
come into the state sector, so
that “ Franco-French ” competi-
tion, as it caBs it, is reduced
to areas where: international
competition Is already -fierce.
Tbas suggests that in most key
industries national leaders wnJL
be designated and' the Industry
grouped around them, a process
that has already been pushed
through in some areas.
• ■ftto report argues that there
is scope for more European co-
operation fa certain fields, fa
jarttatiar, the French are be*
tieved to be aiming at joint ven-
rares *u consumer electronics,
where Thomson bas made a push
-wilh products tike TVS, but is
finite? its base too small in the
face of Japanese competition.
The -fourth reform element,
the launch of a number of
“national projects “ is however,
Hkely to prove the most impor-
tant. These projects are de-
signed as a way of concentred- .
ing resources and overcoming
the problem their limited avail-
ability. They would bring to-
gether public and private
research laboratories, the uni-
versities and industry is co-
ordinated and preplanned de-
velopment schemes. Products
created in the laboratories
would then be handed on to
industry for detailed develop-
ment and commercialisation.
France already has long ex-
perience of this type of mar-
riage between the laboratories
and industry. Some sectors,
like the oil industry or telecom-
munications, already have their
own publicly funded central re-
search laborities, which work
specifically on indusfy-
orientated projects. In tele-
communications. for example,
the E10 electronic exchange sys-
tem, which has enabled CIT*
Alcatel to become, a major com-
petitor in world markets, was
first developed in the .central
laboratory before being handed
on to tiie company.
In the electronics report. 14
different ansi higtily specific
ideas are suggested as areas
where national projects miglt
be launched. These include
schemes for a big scientific and
mdustxTal computer, for new
vis ualis ation methods, for wore
treatment systems and for com-
puter-assisted translation.
The report suggests that aS
the ideas should go through a
two to three-month screening
process to decide on priority
areas, with the survivors then
being taken on for a one to
three-year prototype develop-
ment period. It says that rhe
concentration of resources in
mis way would imply reduc-
tions m spending on other
areas.
Eyen^ before the Government
makes its final decisions on this
report, due during the summer.
M Cbeveuement has made it
dear that it reflects the mate
lines of his strategy.
A number of broad priorities
nave also been established. For
•sample, in the teiecommunica-
pons sector the Government has
indicated that it wishes to main-
tain two main companies, CIT-
Alcatel and Thomson, but that
toere is no long-term future for
me third unit, CGCT, which be-
longs to ITT.
Some tricky problems, how-
ever, r emain to be resolved. In
semi-conducter fabrication there
Me four main operation? in
Franc e,, while in the office
equipment sector there are at
least as many rival companies
all 3ea Iouriy guading their in-
terests.
Defining the national projects
and committing them to specific
companies will therefore require
a major effort of rationalisation,
Wi fli su ch a delicate problem of
industrial management bound
«P m the success of the elec*
2’°^® it is small wonder
mat the Government should be
flunking of setting up a generate
™lsterial department to rim It
Terry DodsworA
. i
r 4
1.
15
. . - ^ --•- cuTrasssa«SE^^J__ _ K '_-.
Financial Times Wednesday July 7 1982
FRANCE m
ist s
ihuicl*
as
Banks’ independence under threat
ON FEBRUARY 12, ML Jacques-
Delors. tie French ’ Finance
Minister, wrote to each of the
chairmen of the newly nation-
alised banks assuring Stem of
total independence of managcv.
ment of the institutions they
bad just taken over.
Three months later — with
M Delors out of the country —
the Cabinet appeared to go
back on this undertaking when
it decided that the Budget could
bear no more than FFr 3bn
of the additional FFr 9bn to
be made available this year to
the newly nationalised indus-
tries. The banks learnt In a
communique issued after the
cabinet meeting that they would
have to provide the rest
French banks have long been
used to nudging from the state
over whom to lend to and on -
what terms, but the brutaBty ■
of the cabinet directive and the
size of the kum involved came
as a shock/ The FFr 6bn is
not far short of the estimated .
FFr 7.3bn net (after taxi pro-
fits made bV the French banking
sector as a? whole in 1981.
TRADE-
WEIGHTED
FRANC
WO - -881 '82'
Since then the banks have
been involved in tricky discus-
sions with [the Government over
the terms on which they will
make toe/.ftuods available and
on safeguarding their battered
credibilfis as independent finan-
cial ingrf-in rttons.
E FFr «bn involved
provided in sub-
s, mainly to the
Sitfa a Tninirmim
ate of interest
five years of 5}
banks jibbed at
ity stake in loss-
such as coal and
Fr Sbn is likely
I as risk capital
to be established
mnpany with an
of FFr 6bn. The
scope and powers of this .in-
vestment institution are still un-
clear but for the banks its
attraction is that it -pools the
risk of holding shares in state
. enterprises.
It is also hoped that a stake
in such a financial institution
(possessing itself a diversified
portfolio including shares in
- some of the most- profitable
nationalised institutions) will
help safeguard banks* credit
rating when it comes to borrow-
ing abroad.
The banks insist that this
raid on their funds to reinforce
the capital structure, of .the
nationalised industries most be
a once and for all operation.
This is certainly the view as
well of the Ministry of Finance
which has always insisted that
the nationalised banks ’ must
operate on commercial criteria,
be profit-minded, pay dividends i
and strengthen their capital
ratios — notoriously weak in
France by international
standards.
The trouble -is that -there is
no guarantee that it- will not
happen again or that the bulks
will not be milked to make good
shortfalls in the Budget or prop
up lame duck industries. In
fact there is a strong lobby
Anglo-French relations
litterrand keen
to co-operate
jCES SAGKES ANGLAIS!”
'pis rather ambivalent ftead-
fae ran over a French maga-
Fne article about Britain,
last as the FaUdands crisis
fa s coming to a head. Apart
from die sense that thepeopTe
i t die Channel never
to astonish, it is hard to
are in what proportions
expression conveys ad-
ion* gentle mockery, or
i.
eh the same kind of
jolty has characte r ised
t French attitudes
ids Britain, both in the
mment and in the public
at large.
To the surprise of some, the
Mitterrand administration ex-
pressed its “solidarity” with
the UK from the first day of
the Argentinian invasion of
the FaDdands, and stuck to
that position throughout.
Supplies or French arms,
which -proved to be such an
effective part of the Argen-
tines* arsenal, were Immedi-
ately suspended.
True, public opinion polls
showed that the Frenchman
in tiie street had no desire to
become involved in Britain’s
war; true, the Communists
were letting the government
side down by going on about
Britain’s “colonialist adven-
tures true, the Government
Itself became increasingly
worried about incurring
further damage to its already
unsettled relations with Latin
America; and true, somebody
leaked a confidential note in
which M Claude Cbeysson, the
External Relations Minister,
spoke in disparaging terms of
“the self-importance of the
former colonial power, its
instinctive, elementary con-
.tempt for what these Latins,
these flashy foreigners have
to say. ...”
Nevertheless, the French
position appears to have been
greatly appreciated in
London.
Headlines
The war went on long
enough to outlast in the
French headlines the latest
nadir of Anglo-French rela-
tions, the majority-versus-one
vole on EEC farm prices in
May. If some people in
Britain perceived this as a
“stab in the back." perpe-
trated mainly by the French,
in France it resurrected all
the old arguments about
whether Britain is really
European at alL
president Mitterrand toned
a statement from Algiers
saying that the issue raised
questions about Britain’s role
and, if these were not
resolved, about its future
“presence-— -or the nature of
that pr esence - i n to®
Community.”
The phrase between darihes
appears to have been insetted
by M Ctoeywoifc who went on
— «t Hie next stage of the
Pres&tenfs African tour— to
talk dbout “adjust ments ” to
UK’s membership terms and
the 41 bags of Ideas** he hod
on the subject.
What these statements
seemed to be fainting at was
a special status for Britain,
mors On ri» msodate
membership which de Gaulle
proposed and London refused
19 years ago, bat less than its
current full membership with
a stake in all the EEC’s
institutions. -
Could this- mean Tutoring
the common farm policy
without Britain? “If that’s
the case,” volunteered a j
‘ senior Brtisb diplomat, “ then
they haven’t thought it
through. It would be like
having nine riiopkeepers fat
a street, with their shops
bulging with unsold produce,
refusing the one customer to
come along.”
Bat it was not a spur-of-
the-moment French idea.
Similar thoughts about -
Britain’s European ties
emerged, by way of a high-
level leak, two ' years ago
under President Giseard
dTSstalng. . - • ~ .
Pressure
It Is still unclear whether
the French really have a plan
up their sleeves, or whether
these statements — in M Mit-
terrand’s case, the strongest
by a French President since :
Briton joined almost 10 years
ago — were principally a
means of exerting pressure, j
a precautionary stance in case
the UK decided not to apply i
the new common farm priees,
or- to withhold payments into
the EEC budget
In the event, the following
week’s agreement by Britain
to a. one-year budget settle- I
ment meant that French
Sympathies were not put to
toe final test
But Anglo-French cohabita-
tion -within the Community
still has to steer between a
number of reefs: the ques-
tion, opened up by the farm
price row. of what decisions
need to be taken unanimously,
the issue of Britain’s medium-
term budgetary arrangements, ;
which comes up again later
this year and the whole
subject of the Community's
future.
Economically, the two
Governments remain either
side of an economic divide,
and French ideas for the EEC
smack suspiciously to the
British palate of dirigisme
and protectionism.
However, both are keen on
political co-operation. The
FaUdands crisis gave the
Mitterrand administration its
opportunity to show good
intentions in this respect So,
in a more, oblique way, does
its stance towards the U.S.
and Naio, touching on what
has long been one of the main
foreign policy gaps between
Paris and London-
Nato foreign minfeten are
due to hold their spring
session in Paris next year, for
the . first time since de Gaulle
took France out of the inte-
grated command structure 18
years ago. For its sensitive
domestic audience, the
Government has played the
event down, saying it is “ just
oar turn.” But ft is an inter*
esting coincidence that the
announcement should have
been made at the most acri-
monious stage of the farm
and budget squab&Je.
David White
within the Socialist party which
believes that the nationalisation
of the b anking sector would
serve no purpose unless it was
to channel more funds towards
longer term leu ding to' industry.
Behind this attitude Hes a long
historical prejudice . against
bankers and financial institu-
tions which makes them “ easy
prey-"
Banks have also had to work
under another serious (and
interventionist) constraint over
the past year. This has been the
result of the authorities bold-
ing toe base bank lending rate
(about 14 per .cent) some 2-3
percentage points below toe
day-to-day money market main-
tained at a high level in sup-
port of the franc. •
Most severely hit have been
banks without a substantial
deposit base— the foreign banks
and French banks such as
Indosuez, Paribas, 'Worms and
Credit Commercial de France
(CCF). The structure -of rates
has meant that their cost of re-
sources through the money mar-
ket is potentially higher than
the price at which they lend.
The banks which have escaped
this trap have been those with
large deposit bases— Credit
Lyonnais, BNP and Credit da
Nord for instance. In fact their
cost of funds has been reduced
by the limitation placed last
September on the interest banks
can pay on term deposits.
Overall net bank profits rose
by under 10 per cent last year
as compared with over 30 . per
cent in 1980. Higher earnings
on international operations
were offset by increased pro-
visions for bad debts (both on
domestic lending and overseas
in the case of East Europe and
Argentina), the discrepancy
over money market and bank
lending rates, and higher taxes.
Grievance
Losses incurred through the
migmatr-h in interest rates have
been a major grievance of
foreign banks dependent on the
money market for their French
operations. ' In contrast to the
rush of foreign banks to France
over toe past decade — 122
had been established by the
end of 1980 — only one new
bank has opened in the past
year. A further source of com-
plaint for both foreign and
domestic banks has been the
impact of the system of “ en-
cadrement” which limits toe
pace at which banks can expend
their lending.
The Government has got
itself into a muddle over it.
On the one hand it wants tight
control over bank lending as
part- of its anti-inflationary poli-
cies — which implies penalising
hank* who lend beyond the
“ encadrement ” limits. On the
other hand, it is anxious that
banks should meet the pressing
short-term liquidity needs of in*
dustry to prevent a farther in-
crease in bankruptcies, while
at toe same time encouraging
banks towards more long-term
lending. The “encadrement”
system is cracking under the
strain.
It Is still far from clear what
the shape of a Socialist banking
system will be or how the
character of individual institu-
tions will emerge. Mergers are
clearly in the air to group banks
with large deposit bases and
those dependent on the money
market for their resources. The
Government is slowly carrying
out what' is called a “banalisa-
tion” of toe banking sector —
essentially an attempt to pat
France’s, diverse banking insti-
tutions on a more equal and
competitive footing. Thus the
new indexed linked savings
certificate — the “ Mitterrand
bond is being made available
through specialised institutions
like Credit Agricole and Credit
Mutuel as well as through the
deposit banks.
The new banking -law pro-
mised for this -autumn seems
likely to be no more than a
technical measure. M Delors is
for slow change rather than
root and branch measures but
the -identity of banks is chang-
ing under new leadership.
Soctete Generale, for instance,
is losing its reputation as an
aggressive profit • seeker— taxa-
tion and other state levies on
the banks have inevitably
diminished the attractiveness of
the profit motive. In addition
the efforts of the former chair-
man M Maurice Laure to make
of Sorittfi Generale a leaner,
more cost-conscious institution
have landed his successor M
Jacques Mayou with almost con-
tinual labour agitation since he
took office.
A major concern of the
Government remains the
encouragement of long term
savings to he channelled
towards industry. An o ffi cially
commissioned report on savings
by M. David Dautresme. now
head of Credit du Nord, and
published earlier in the year
emphasised toe importance of
retaining an interest rate
structure that provided a
significant real return * for
investors.
It- has been on this basis that
toe domestic bond market has
fast expanded in recent years
from FFr 65b n of new issues in
1979, to FFr lllbn in 1980,
to FFr 206bn last year and an
estimated FFr 130bn this year.
By comparison new share
issues brought in only FFr 23bn
last year — although this was a
rise of 10 per cent on 1980. As
a result of both nationalisation
and dividend control, risk
capital for industry is likely to
be more difficult to raise in
future.
David Honsego
Sfe-
. 35m . . V
.WWW 1 * •
'9RK?
>5:
' v-.wiul
J
The headquarters of Banquc Rationale de Paris in
Boulevard des Italiens. BNP ranks third in the latest
Banker Magazine list of the world’s top 500 banks
(behind Bank America and Citicorp) tritli assets of
$106, 731m. Three other French banks. Credit
Agricole, Credit Lyonnais and Soeicte Generale
appear in fourth, fifth and seventh places
respectively
“The car c
load space ot any estate inits
class, where the rivals include the
Volvo 265, Ford Granada, Ahuxhall
Carlton, Citroen CXand Datsun28Q
• 4 •
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THE OMteTIMKS
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\
.16
Financial Times Wednesday July 7 19S2
FRANCE VI
GNP falls as economic
plans come unstuck
M Chevenement: new Minister
of Industry and Research
M Chirac: leader of the neo-
GauUist RPR Party - .
M Barre: establishing his
presidential credentials
Sodalist-Commimist coalition must now expect to do
badly in the spring municipal elections
Left braced for losses
SAVING elected M Francois
Ifitterand as President in May
last year and given the
Socialist Party an overwhelm-
ing majority in the National
Assembly in June, the French
expected a lengthy respite
from political conflict Two
events suggest the respite will
be brief.
h by-elections to the National
Assembly in January and in
the cantonal (local) elections
In March, the Socialists
emerged as unexpectedly
vulnerable. In the four by-
elections they lost three seats
they had won in June but in
which the results were over-
ruled by the Constitutional
Council.
at the cantonal elections the
swing was far greater. The
combined left-wing parties
(including the Communists)
were deprived of outright
control of nine of the 44
departmental assemblies they
held — leaving them in a
majority in only 35 of the
country's 95 departments. The
combined GaulUst and centrist
parties polled 59 per cent o i
the vote indicating that
middle-of-the-road voters who
had opted for the Socialists
last year have moved back to
the centre.
Fhe second event was the
devaluation of the franc last
month and the prospective
drop in real incomes as a
result of the wages freeze.
These are issues which deeply
touch both French prestige
and pockets and which have
at last given the opposition a'
platform from which to mount
an attack.
M Jacques Chirac, the leader of
the neo-Gaullist RPR Party,
used the subsequent censure
debate in the Assembly to pin
economic failure on the
Socialists and stake out his
claim to be die main opposi-
tion leader. He even sketched
an alternative programme
Including a phased three-year
return to a balanced budget
and lower taxation. M Ray-
mond Barre, the former Prime
Minister, has also with quiet
authority been establishing
his credentials as a presi-
dential candidate.
Still out in the wildnemess
and bereft of public sympathy
is ex-President Giscard
d’Estaing. But his quarrels
with M Chirac, which
undoubtedly helped lose him
the election, have so far not-
stood in the way of far closer
co-operation between the
parties of the centre and the
right
The next major electoral test
for the Sodalist-Commimist
coalition will be the municipal
elections in the spring. Theser
are -crucial to both parties in
strengthening their local base
— and have become move so
as a result of the additonal
powers the municipalities will
obtain through the Gov-
ernment's decentralisation
measures. The left must now '
expect to do badly in die
municipals and will be fight-
ing to minimise its losses.
In his provisional timetable
M Mitterrand planned to
replace M Pierre Mauroy as
Prime Minister and cany
through a major cabinet
reshuffle. But the present
administration could be
scuttled earlier if the stabilisa-
tion measures prove a flop.
After the municipals the Com-
munists are likely to make
their decision on whether to
quit tiie coalition. The Com-
munists have felt increasingly
uneasy in a government with
which they have disagreed
about Poland and with whom
they are now associated in
imposing an unpopular wages
freeze on their own rank and
file.
M George March ais, the party
leader, made his strongest yet
criticism of the Government
last month when he said that
the party could "in no way'
approve ” a wages freeze. But
the Communists insist they
-are still loyal members of the
alliance. With their share of
the popular vote reduced to
13 per cent during the
-cantonals after polling over
20 per cent in the 1970s,
pulling out now could risk,
electoral disaster.
The blows to the economy have
bIbo intensified the strains
within- the Socialist Party.
M Michel Rocard, Minister of
the Plan, and leader of the
Socialist Democrat faction,
has been openly critical of the
content and the presentation
of the stabilisation measures.
The Ceres group, of which
M Jean-Pier re Chevenement,
now elevated to the post of
Minister of Industry and Re-
search, is the head, remains
. distrusted by M Mitterrand.
Even M Mitterrand's own
followers — the largest group
among the Socialist deputies
in the Assembly — have been
voicing their bitterness about
being kept in the dark over
policies.
M Mitterrand’s hope is that his
economic policies will bear
fruit before the 1986 legisla-
tive elections. If the Socialists
should lose those, he would
have a rough ride in the last
two years of his Presidency.
DJL
THE
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INDOSUEZ.
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Banque- indosuez has always dis-
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portunities.
BANQUE
INDOSUEZ
IS
M JACQUES DELORS, the
Finance Minister, curtain raised
the post devaluation stabilisa-
tion package by describing it as
an "electric shock" intended to
jerk France oat of its bad
inflationary ways. Bat Jile real
shock for the Socialists this year
has been how badly their
economic plans have come
unstuck.
The government’s economic
strategy was based on an expan-
sionary 3.3 per cent real growth
in GNP for 1982 to boost jobs
and lower unemployment. In-
creases In. the Tniniranm wage
and social allowances in July
last jeer were followed by a
budget for 1982 that raised
expenditure by 27 per cent The
gamble was that a consumption-
led recovery would be. sustained
by a growth in exports from an
anticipated pick up in world
iiwnanrf and by an increase in
unvestniemt.
Events turned out very diff-
erently. After a year long
recession, real GNP moved
upwards from the second
quarter of 1981 to' achieve an
annual rhythm of 3 per cent
over the six months to the
autumn. The acceleration In
growth thus began before the
Socialists took office and coin-
cided roughly with their first
six months in power. The
economy then began to slow
down with real GNP actually
falling 0J. per cent in the first
quarter of 1982.
Behind this drop In activity
lay a virtual stagnation in indus-
trial production. By the aid of
February the industrial produc-
tion index had fallen bad: to its
February 1981 low — or 11 per
cent down on Ms peak of mid
1979.
Investment
The continuing increase in
real household incomes (rising
2.5 per cent annually both this
year and last mainly as a result
of increased social allowances)
has been the major factor sus-
taining the economy. By con-
trast industrial investment
(in cluding housing) fell 3 J5 per
cent in volume hot year, and
even before the devaluation was
expected to slip further this
year.
On the external account
exports, which rose sharply tn
the first half of 1981, dropped
back almost as. d ramatically Jn
the last quarter of the year and
the first quarater of 1982 —
some 6 per cent down in volume
terms by March from nud 1981.
The sharpest falls were in cars
and transport equipment seem-
ingly reflecting a loss of com-'
petit! vity with France’s major
rivals.
By contrast the Government-
inspired boost to consumer
demand benefited imported
manufactured products more
than French industry. Foreign
penetration of the French
market for industrial goods
readied a new peak of 27 per
cent in the final quarter of last
year. Over 1981 as a whole
imports covered a staggering 50
per cent of the increase in con-
sumption of manufactured
goods as compared with a ratio
of 25 per cent of imports to
consumption for the year as a
whole.
Both trends accelerated a
widening of the trade deficit
which for the first five months
of the year reached FFr 30bn on
a seasonally adjusted basis as
compared with FFr 17.9bn for
the same period last year.
The slower, than expected
growth in the economy pro-
duced a fall in Government tax
receipts which further
exacerbated the budget deficit.
By comparison with the planned
FFr 95bn deficit for 1982 (itself
already weH up on the FFr 78tm
last year and the FFr SObn in
1980), the actual deficit this
year appeared to he heading
before the devaluation for the
REAL GNP
Animal
average
1963-72
3978
1979
1980
1981
1982+
France
5.5
3.7
3£
L2
0A
2.1
West Germany —
4.5
3.6
4.4
L8
-0.3
L0
U.S.
10
4 JS
3JS
-09
2.0
-14>
Italy
4.6
”2.7
4.9
3JS
-0.2
2.3
UK
t Forecast
3.9
3.6
2.0
-UR
-2.1
Source:
0.8
IMF.
15%r
1096
FMAMJJASONDJFM
1981 1982
w»-
2 *-
Presidents Mitterrand and Reagan meet at the Versailles
Economic Summit earlier tills year. France was able to
emphasise its stature in the world by hosting the conference
bat in the. end the country, will be judged on >how it
strengthens its faltering- economy
FFr 125bn level.
In addition, the estimated
deficits in the separately
managed Social Security and
Unemployment Benefit funds
were expected to reach a com-
bined FFr 70bn by the end of
1983.
The rise in the budget deficit
— financed largely out of the
increase in Treasury bills — off-
set the measures the Govern-
ment took in the wake of the
first devaluation in October to
bring down the level of infla-
tion. By April prices were
again up 13.9 per cent on the 12
month- period — leaving a gap
of nearly 9 per cent between
France’s inflation rate and that
Of West Germany.
The combination of these
trends — leaving France out of
step with her competitors over
the direction of her trade and
budget deficits and her inflation
rate — had already by March
resulted in renewed pressure on
the franc. Between February
and the second devaluation on
Jane 12, the Bank of France
spent FFr 45bn-50bn in inter-
vention in support of the
currency.
In the end the exhaustion of
the reserves determined the
timing of the realignment. The
French franc was devalued by
10 per cent in relation to the
DM, winch together with the
first devaluation, made for a
depreciation of 1&5 per cent
since October.
The June devaluation marked
an abrupt and humiliating end
to the Government’s attempt to
pursue an expansionary
economic policy in the face ctf
the deflationary policies of
France's main competitors.
With tiie new stabilisation
measures the priority of policy
has shifted towards bringing
France’s inflation rate closer to
that of her competitors — the
Government’s aim is for 10 per
cmt tills year and 8 per cent
in 1983. Paradoxically France
is thus entering a period of
deflation as other western
economies are looking to a pick
up in demand.
Price freeze
In opting for a prices and
wages freeze as the main instru-
ment of the stabilisation
package, the Government hopes
to achieve a declaration of
prices without cutting into its
heavy investment programme
for the renewal of French
industry.
The budget deficit is to be
held to 3 per cent of GDP this
year and in 1983— -respectively
FFr 107bn and FFr 120bn — by
cuts in current expenditure.
Employers’ and wage earners’
contributions' to the Social
Security and Unemployment
Benefit funds are to be raised
to help bring them back into
balance.
Are tiie measures sufficient to
avoid a third devaluation in the
near future (and possibly
France’s departure from the
EMS)?
Price and income freezes
have had scant success in France
in the past. The risk is that a
four month freeze will he fol-
lowed — not as the government
hopes by 18 months of nego-
tiated price and wage restraint
—but by an acceleration of
prices and wage increases-
Unions are loathe to accept
the loss of purchasing power
implicit in the freeie, or over
the longer run to give up the
system of virtual indexation
that has long ratcheted wages up
With inflati on. V
Industry is anxioiu to raise
tts prices both to recover the
increased costs of imported
materials and to 1 rebuild its
profit margins. The conbination
of higher financial cha.*ges. new
tax and social security bills and
additional costs resulting from
the introduction of the shorter
working week and loofer holi-
days have squeezed tompany
profit margins probably to their
lowest level since the wa t
The size of the budget deficit
continues to be a factor v Infla-
tionary pressure. It isJjy no
means certain, that the Cbvera-
ment will be able to hqldto its
planned ceilings. Cuts h cur-
rent expenditure will in part be
offset by the increased subsidies
needed to hold down the
increases in public sector trills.
The Government is panning
contradictory goals over its
deflationary policies. It vasts
to bring prices down bu to
sustain economic activity <t a
level that will maintain emfloy-
ment. Even before the devia-
tion, the official statistics bueau
had been predicting a fresh ise
in the number of jobless to 21m
by the end of the year on
unadjusted figures.
Estimates of the deflation ay
impact of the measures (depad-
ing on assumptions abort
exports, loss of purchasiig
power and expenditure cut)
vary from the Governments
prediction of a 2.2 per c«t
growth in real GNP this yea*
(roughly the same as before tit
devaluation) to some privet
forecasters' estimates of a to*
L2 per cent growth.
In any event private invest-
ment is almost certain to fall
further in the light of
employers fresh uncertainty
about dividends, prices and
profits.
The continuing strength of
dollar continues to throw off
balance the Government’s cal-
culations over the size of the
trade deficit Some 37 per cent
of French imports are payable
in the U.S. currency which has
risen from FFr 4 to the dollar
in 1980 to nearly FFr 7. But the
Government hopes that with a
renewed surge in exports and
a pruning back of imports this
year’s trade deficit of an estim-
ated FFr SObn should be
reduced to FFr 50bn next year.
Many of (he Government’s
followers are sceptical of suc-
cess. So are -the fo reig n
exchange dealers.
David Housego
David White profiles M Edmond Maire, CFDT leader
Mitterrand’s critical ally
ONE HAN who Is deter-
mined not to leave Socialism
to the poHtidans or to the
Government is M Edmond
Maire.
The 51-year-old leader of
fhe Confederation Frangalse
Democratique dn Travail
(CFDT) — an organisation
which he sees as becoming
“ in tiie medium term the
principal force of French
unionism "-—is both a natural
ally of the Mitterrand admin-
istration, and a frequent
critic.
His distinctive voice, the
result of a damaged nose, is
the most widely respected
one of France’s trade union
world. Alt hough contested
within the- CFDT Itself, the
unpredictable M Maire has
gained in stature in the
country at large since- the
Socialists came to power.
The weekly magazine Le
Nouvel Observateur went so
far as to state that recent
events had made him "the
intellectual and moral leader
of the French Left"
W Maire follows his own
course. After pleading for
economic “ realism " and
helping to prepare the
ground for thif summer's
austerity measures, he balked
sharply when the -Govern-
ment decided to legislate on
■ wage freeze rather than
rely on the " sense of runoo'
sibllity ” of the workers.
He had already startled the
Government last October
when he came out and accused
tiie country's new leaders of
bacHng down on their
promises and took issues over
tiudr energy policy, their
approach to workers 1 right*
and their nationalisation law.
M Pierre Mauroy, the
Prime Minister, tried to shrug
the tirade off by saying that
M Maire was one of the gang
and was amply “marching
faster than the music." He
invited M Maire to lunch but
M Maire said he was sticking
to his position and was not
Spins to “ march to the
rhythm of a Prime Minister,
however good be is."
This was not a break with
Socialism but rather a reply
to people, inside his own onion
who suspected him of becom-
ing a go v e rn m ent pet. Bf
Maire remains close to the
Socialist Party, or at least to
a certain part of it.
M Maire: determined not
to leave Socialism to the
politicians
■ His approach is far more
qualitative than that -of
other amorists. A man of
strong Catholic background,
who helped menu the
Christian trade union move-
ment to build up the CFDT,
he Is one of the m
committed advocates
“ autogestion " or work
manageme nt.
This was the Innoval
theme he pic ked - up when
took over as CFDT leader
years age. The union fillet
vacuum on the political I
following die heady “even
of the spring of 1968.
The “slxty-elgfatere" hi
left their mark on the uiri
While the leadership le;
towards the Socialists, th-
is ft- strong fringe 1 eleme
raging from Trotskyists
Ecologists, difficult to be
under control and just as hi
to keep together.
Taking, a more apollti
stance after . the Lei
general election defeat
1368, M Maire was regula
vilified by his Commux
union , rivals for becoming
middle-of-the-roader. He 1
exposed himself to. th
attacks once more by prea
ing moderation. What
wants is that the Left shoi
sneered. and his warnings ;
directed both to the Gove
. »d to other unionis
“If you do any old thing, i
the workers who cop It"
17
m; SraADY aaa remorse-
less decline <* the French
wbiat tool sector is one of '
f he cl earest Ulnstretlons oc
tonnstry*s fan are to adapt to
new technology. Imports -
Jave mounted regularly over
tne past decade, partiadariy ■
frim West Germany- and mote
from Japan, nntn
tney now account for 60 per
cent of -sales. Expta^thMigh
taking np about of pro-
duction, bare failed to keep
pace. •’= •• ■ ;
„ Bnaraged . by FresWent:
gracote Mltterrami, ' the '
rOffldi Government is now !
trying to stop this deteriora-
tion With a vigorous pro-
gramme of intervention. This
Policy is Inspired. by the
belief that macffine tools wiH
be a key industry dazing: me
revolution In mannfaetRzlng
techniques untefotod by the
development of robotics
automated factory systems. A
strong French industry is
essentlaL. tt argued, both
to support the development 1
of other B annf^ wr l n g -see-
tors in France and to win new
export markets.' 1
. The Gorermnent faces sub- '
a f a nti al- dlflScnltles,; however, ■'.
fn trying to reor gdni se the ■
daddne tool companies. One .
of the main characteristics of
; the industry is Us diversity.
■ ft fa. spBt -Into pmaQ-
spctdaHsed molts which have.
little 1 In common and which
are. often, not by. bdepot
dentiy minded entrepreneur^. -
French 'planning techniques,
' which have been sfrsnccestfnl
In organising large-scale in-
dustries such as nuclear
power or teteemnnunKhatiffins, v
have proved to be less effee- :
tire in the fast in. tedding'
sectors ..like machine -tools, :
where the tead wniBng
‘ centres are so dispensed. -
These difficulties have been
evidcmt 'fn ' the' fang, drawn- .
oat negotiations between the
Government and the. industry
since flie announcement of the
broad' details, of the -machine -
tool plan last December. In
'■ the plan, by far fhe-most im-
portant of the . sectoral pro-
. jeets falling outside . the ..
nationalised indnstri.cs, the
Government has set a target
f almnst doubling sales to
real terms, between' last year
and 1985. Within this g;*al
figure Ihe main
come in- numerically . eon-
troD ed machines, wheresales ■
are. projected at FFr 4 ^Bbn
<£3b0m) oat of * totaf;_ef
FFr. TAIm in. three years .
• time.
- The Government aims . to
. stimulate thefntfustryhy act-
.- tog on both dp-fiwrtit? mid
supply, on. the demand side it '
has promised orders worth
about FFr L2bn , . (flOflm) \
from flie Education andTrain-
tog Ministry and will invite
the newly nationalised In-
dustries to boy French when
they move fully- into their
new in v e stment cycle.
On the supply side- die
authorities wiH help-with re-
search, - development and
training projects through the
national research instates.
There wfll also be support for
. development projects ; to
create more sophisticated com-
ponents for tiie industry. But
the main effort — and the
main problem — concerns me
reorganisation of the indu s try ,
currently split into* 140
separate companies. . ;
; The idea behind this re- .
structuring - was to create
.bigger units which would he
able to achieve _ some _. scale
economies in component de-
■ velopment and production, as
wefi as their sales networks,
to (Ms way the Government '
hoped to be Ate to mafce Its
FFr Ubn (£200m) expendi-
ture eh investment for toe
Above:’ at Mirage 2000— sold to India and Egypt,
■j Below: a Citroen BX14RE—one of
France’s recent launches
maehtoetool companies (to he
matched by FFr 1.71m . from
private sources) much, more
effective.
Several reorganisation pro-
jects have been studied ever
the last year in the attempt to
encoorage : companies to, come
together ivith'- sufficient funds
to ensure' their development.
The most Hbely conclusion
Will be the relation of two
- main groups in which the
thorny- question, of ownership
and new capital wfll be solved
by significant shareholdings
held by state companies.
In effect flds would mean
that the big user companies
got a vital say in. the develop-
ment of tbeir tool -supplying
companies. For the machine
tool sretor it would demand
a big change from its present
situation . of relative financial
Independence, while the
Gov e r nm ent- would run the
risk of criticism for creeping
nati on alisation. . But as In
Britain, with its long Alfred
Herbert saga,, many of the
companies in the sector are
now reaching the stage where
the is between total,
collapse-, and Ihe infusion of
public capital.
Terry Dodsworth
David White
profiles M Yvon
Gattaz, head of
the employers’
federation
CNPF
chief
:H Gattaz: -&owmg
impiaMer^ the...
.. au£hor&ies>.
Government faces difficult taskof getting a larger
range of companies to export
H ' ’ ~ .
tougher
'WHEN' M Yvon Gattaz wag
named late last year as the new
head of France's employers’
federation, the CNPF, he was
baled as the candidate most
Eke3y to get along with, the
Socialists.
Contrasting wife his prede-
cessor M. J iangotts Cyirac;a
long-time ^fQnctiomxaixe ” of
the organisation, M Gattaz was
seen as a “technical” rather
than; a. “political’’ choice.
Working in ins favour were a
background in a successful
medhmHMzed pruyiiKtol com-
pany and a progressive image
based on' two books on entre-
IGSy WILL protadfty get year and ' especte another 50 Mirage 2000, the first proctae- preneurial philosophy,
i *J^F ore better. per cent rise tins yam:. . . tton line, model of which is due .The arrival of this owl-like
is tne general outlook for A South JKorean order for two . for the end of this year, has, - figure, with his thick glasses
P^orinance- appear reactors in late 1980 after ah - initial disappoint- and his epigrammatic turn of
ar thelfcitterrand ad man fatz a* broke a long French jinx in.ment ln Australia, been sold* jfirrase, was quietly welcomed
is sec ond d avatoatBOm. ttfis sector, marked by dropped toEgypt and India. The com- by the Etysee as promising a
le country has been caught deals in China and Iran_ Given pany is meanwhile sounding thaw in its relations with the
n awkwanl monetary trap: a freer hand after the breaking - oat Jttiddle East clients for its “ Patronafc" M Gattaz’ initial
the one hand, a franc that of Westinghoose’s rfiarefaolding export-only version, the 4000. "statements were indeed cdsmsI-
“ as$« todawith the RewhrtJn^toc- # other- major export hrtory; he said that the coun-
lar, Ihe cnaren cy i in w hidx tor Ei toiatom e, the French are a^ngth has beSi food; a try’s employers had no “yis-
tied. of Us- «npom are taJw paasatng elnscve oontracts sector which «as to a cerai boatiBty” to Socudasm
Tto^on^fte other a in Hzriand, Mexico and dse- 'wd " ttitS* CWFF ted “no
t hat has long been-con- where. produces asurplus rivalling vocation for bmng an oppose
owiya la^ .a^anst me ^ Aircraft are Included in that of motors. This success is tion party.”
Jz®-. ' 011 fibres for the general category wmewhat fragile: last yeart The CNPF has found com-
hwto of investment goods, which pro- record FFr 21.51m surjdus was nwm ground with the aulhori-
exporrers i ^ i»eu doced export growth of 2U5 per to large measure due to good ties on issues such as the lost
icr u evaluation way cent last yg^j. ^ a record cereal crops and low prices for opportunities of French indus-
moQttdy sales figure of commodity imports.- But it also try and has played along with
FFr 12.6bn. to : May. reflects a strengthening of the its idea of “solidarity con-
Jfrancete share of the six food-processing industry. tracts ” tor creating jobs.
S'^rcraTtolSSl! J The ®urop«*n Airbases soW in May Wine and spirits exports— But M Gartaz’s tone has
balSce^aSi 1 ^ kept down ^ ^ ^ cognac, champagne -and become increasingly .tougher,
to a deficit of less thaiiFFr 5bn Perform? 1 re. Ihe cavil awo- daret— meanvrfule rose 20 per displaying growing impatience
a yeS ‘ ™ to «* FE ^ 14 l n “ W at ^Alterities’ response to
hac fnJiowftrf a tretiwi™? course. I?*** helped by the rise of the the corporate sector’s financial
tided.-
iered
(after
into the GSscard a dntims -
In the .flist'few months
thSs year, exports levelled off
an' increase of just under
hac fniUHmd a tret^rlnc course. nezpeu oy tne nae or tae the corporate sectors nnanciai
MttiiiJ^La SffeSS pUsM md rrfecttagfte mood
SSto ApSfemStog toe com-' testing of toe largely- & French franc terms from the ofmany of the CNPFs mem-
Sent u -®-» the biggest market. ^s. tAo would favour a more
Foreign Trade Minister M r overtly political stance.
Michel Jobert) and averaging Aerospatiale, Matra Gompetltl vity His recent statements are
out at some FFr ttn » nmotiu ^ Thomson-CSF— are afl But even to this sector peppered with the phrases
Among export leaders, the t develop ' their exporters are worried about “alarm signal and danger
French car makers have been satellite activities. competitivity. mark.” Concessions by the
the exemplary victuns fll U)» qr^ new Franco-Itallan Overall, Frenchexpart growth Government on the so-called
loss of competibvity, decile a atr- 42 regional transport air- tes come to depend largely professional tax— for years the
recent boost from new model already - - has ' half-a-' -<m ■ oil-producing countries, CNPFs great bugbear — and
launches,- -and .they ^ezeoor ; -^usromirs Abut. the key developing countries, ahd,^ '-less increased state support for
cerned toat the dispaai^ Qj e medium-tena future wiU reliably, the ' Eastern bloc; investment are outweighed, he
b 5 w ^- n - Fra f J c l^ umation and next Airbus generation, capital goods sales to the Soviet argues, by new burdens: shorter
that of its -neighbours wm con- . ^ A-320, and the Union dropped 10 per cent last hours, extra holidays, earlier
ttoue to play against them. ^ jts launch- im the year- though they are now set retirement and workers' rights
_ . . ' - to recover od the basis of some legislation that he reckons will
strength - . Its success is also conMdered FFr 12bn worth ' of orders cost companies the equivalent
For all tMs, France’s 'sraplns .crucial to the .future of Euro- of 1 per ^ ° f < “' ptoJL
to its trade to industriai goods -pean «K>peratw>n in this field, mcludi^ some FFr Sbn for have more and more the
soared by FFr 20bn last year; where half of Fren(* manTifae- th |„ Sl ^ ia P ^L ftrS « ““Prosmon,” he said recently,
and some export sectors have ttrrers’ total orders a» tied up ‘ ^ “^..^egon^ “that my visits to our political
gone from strength to strtogth. . in joint projects. ■ r • ^Utic^ reMderatU^ oft«i leaders end up as lands of
A diversified group such as- "
recentiy-nationalised CGE
still show, a 40-.' pet" cetrt-plus — - T — : . - ^ worm at oraers received lor *uc iwretumsmo wnm
annual increme m sts overseas stamming ™ civiBan investment - goods last efiorts to woo small and
tumovet Expwt successes con- lands war. The fljrfeace busi- 0 - igte a from medium-sized . businessmen
tinue. to came .to. i(X majOT nes sagged somewhat last yew-, ^ industrialised West France through rival employer organi-
bullding coiriracts, metro but nothing .like ^ as^ much as hnc m, big deficits with sations have led the CNPF to
systems, telephone initiations, the mdns tey ea re d ^when Presi- ^ ^ ^ Organisation set up special committees in.
power equipment ■ and so on. dent Mitterrand {^ne to power. for -Economic Cooperetim and order to take the interests of
Broadly, France’s most lucre- ..hMte event, tte only new Development '. members- and these categories more into
rive sdltog ptich is to mednran- export bans have afferted ChHe . ^ eec - Last year the account
tBtotesr CommunitYs .'Share .of’ftench A t the other end of the scale
credit terms. -
been reaissufetL
industrial groups, with a senior
• in capital goods, tnere.are. WUle tivnian oram in the “ e ^ ttTC „ o£ Tbraason-Brandt,
weak points in machine-tools investment goods sector rofcfe 30 hard to set iuta 5 rai ?’ being put m
Ld - Site an impressive per cefit last year, military Go^SSment bones charge J of ^ e . organisation’s
export record in digital tele-.- orders ^waf only haH, tot ^SS555to»^S ^ rT 1 , ,
phone exehMigM— professional rate, and . actud.. sales, .accord*^ ^ todusSa! reorganisation, to .. His ™ background 1 Places
electronics, especially com- rng to the Defence ICnlstiy, niirtlire a moreaggressive ”*•??. between the two.
puters. But heavy electricals, fell 10 per' cent *rto under sector able to hold* its- The speaalised- etectnmic com-
building materials and indua- FFr 34bn, but. they. have, since ^ in . essential, P° nent company Radiall, which
trial equipment have all per- shown signs of recovering. inherently more stable, mar- “ e and *** brother set up 30
formed well. -An. example is The Dassauh-Breguet group ^ Like, its predecessor, it years ago, now has a workforce
Alsthom-Atlantique* .a. group atone. , which has. given France faces ^ ^ of get- «, about 900. JEs formula?
specialising in power gener- its successful series of Mirage ting - a large!r ^ com- To create a company you need
a tion, locomotives and ships, combat-aircraft, ‘ has already patoes involved to exporting. 45 Pf r 08111 courage, per cent
which, reported a 5$ per-cent reported FFr 13bn.-wprth of "■'•TlamA White remessness and 10 per cent
increase to foreign orders last orders this year. ■ Its. new lyffYia Willie money.” .
fn T5 major cities in France
Bayonne, Bordeaux, Dijon, Grenoble,
Le Havre, Ulle, Limoges, Lyon, Marseille,
Nancy, Nantes, Roubarx, Rouen,
Strasbourg, Toulouse
In 8 of the largest business centers
in the Paris peripheral area
Cergy Pontoise, CrdteiL Neuilfy Levalfois,
Paris La Defense, Paris Nord Le Bfanc MesniL
Rud9 JWalmaison, Saint Quentin en Yvdines.
Vdizy VUlacoublay
BANQUE FRANCAISE
DU COMMERCE EXTERIEUR ^
Head office: 21, boulevard Haussnianh, 75427 Paris cedex 09, Tel.: [1J 247 47 47
derospatiale
1 this is who we are:
one of the world's largest aerospace manufacturers
Not the first m the world, but already the first in
Europ^ in terms of turnover (above 13 billion
french francs in 1980) and diversity of products.
We were incorporated in 1970 under the name of
Soci6t6 Nationale industrielle Aerospatiale, as a
result of the merger of Nord-Aviatlon, Sud-Aviafion
- and Sereb. Some have been inclined to shorten our
name, retaining only the initials S.N.iAS. ; with the
same obieefin mindwe preferto be called commonly
derospatiale. It is our signature.
top nranpower
Men whose imagination and creativity have made our achievements possible. Close to 40,000 employees,
specialists* engineers, chosen for their skill In particular fields.
ways and means
The most modem research, development and production facilities,
where data processing plays a leading part
Computer Aided Design (CAD), Computer Aided Manufacturing (CAM)
Behind these means, a policy: to come up with the best product at
minimum cost
products
The most diversified range of aerospace products: airplanes,
helicopters, tactical missiles, space and ballistic systems,
combining top performance and low cost of operation in
order to satisfy market requirements.
We are the largest manufacturer of helicopters and
tactical missiles in Europe, and the French Nuclear
Defence Forces are equipped with our
strategic ballistic missiles.
Finally, in the framework of
multinational industrial pro-
grams, we are responsible for the success
of a number of famous products that
are not signed only with our name:
AIRBUS A 300/A 310 - ARIANE -
CONCORDE - HOT - MILAN -
ROLAND -INTELSAT V-
METEOSAT...
ra ?
7
exports
We are exporting 80% of our
heiicopter production, 70% of our
missiles, 90% of our airplanes, as a
mark of quality of our products -
tailored to market requirements, and
of our competitive sales policy.
Societe Nationale Industrielle
S derospatiale
37. bd de Montmorency - 75781 Paris Cedex 16
7 \l M
i
18
Financial Times Wednesday July 7 1982
FRANCE IV
Several development plans for industries in difficulty— including leather,
toys, textiles and wood working — have been announced by the Government
over the past year. But the most important relate to chemicals and
steel in die fully nationalised sectors and to machine tools (see page V) in
the privately-owned part of the economy.
Chemical production at Rhone-Poulenc, one of three poles around which the French industry
is being reconstructed
Planners reconstruct
chemical industry
FRENCH PLANNERS have for
years tinkered with reconstruc-
tion plans for the chemicals
industry. Despite its creditable
export performance— -the favour-
able trade balance last year was
FFr 14.4bn (£1.2bn)— the
industry's rambling structure
and chronic financial instability
have made it an obvious case
for treatment Now, after years
of hesitation, the Socialists have
at last decided to take up the
knife and try radical surgery.
The plan which emerged from
the Industry Ministry in Mav is
aimed at concentrating mass
production in the industry on
three main nationalised groups.
Each will be relatively
specialised and, it is hoped, of
sufficient size to compete effec-
tively in world markets. There
will be some rationalisation of
product lines— swopping of
activities to give the most logi-
cal manufacturing mix— tat
many of the details still have
to be worked out.
By far . the most important
element of this plan is the
decision to put PCUK, one of
the heaviest loss-makers, into
the Elf-Aquitaine oil group's
crowing pctro-chemicals empire.
PCUK is a subsidiary of the
PUK metals group, which has
been steadily drained by its
losses in chemicals, and which
the Government wants to con-
centrate on its extensive
aluminium activities. Elf. on
the other hand, has .a very posi-
tive cash flow. Hence the idea
of marrying the two with the
aim of using Elf’s funds to
finance toe rationalisation.
At the same time Elf is to
take the majority stake in two
petro-chemicals companies, Ato-
Chimie and Chloe-Chimie. which
it currently holds jointly with
Total, the second of the two big
French oil groups. One of the
weaknesses of the French in-
dustry In the past. It is felt was
the proliferation of jointly held
companies that suffered from
weak management. Elf is to be
given charge as a kind of
national champion in the heavy
chemicals sector.
Strategy
A second grouping will be
based on Rhone-Poulenc, the
largest company in the industry
at the moment with a turnover
of £3 bn. Rhone-Poulenc had
already established its strategy
before nationalisation, lit is to
continue broadly on fts present
path of specialisation in the
high value-added sectors such as
fine chemicals, pharmaceuticals,
agro-chemicals and plastic films.
Its artificial textile business was
savagely cut back before the
Socialists came to power and
will stay that way.
The third “pole,” based on
CdF Chimie, the chemicals sub-
sidiary of Charbonnages de
France, toe nationalised coal
company, looks the weakest of
the three. CdF lost FFr 1.2bn
(£LOOm) last year and is heavily
undercapitalised. But it has
roughly been given the job of
leading the heavy chemicals
activities in France.
This overall strategy will be
fleshed out, if the Ministry's
plans are realised, by further
takeovers and rationalisation
among the different groups.
The future of EMC, a small pub-
lic sector company, and of
Cofaz, taken over in the Paribas
bank portfolio, still remains to
be derided; there will be fur-
ther reorganisations in fertiliser
and dye manufacturing.
The Government scheme, how-
ever. still begs the question of
whether France can catch np
with its international competi-
tors. Investment in toe Industry
has slipped badly, falling con-
sistently in real terms since
1974. Much of the earlier
Investment was also in the
wrong areas, so that France
now has an overcapacity in
PVC plastics, often produced
in uneconomical^ small plants.
The problem faced by the
industry therefore, is to push
through this necessary slimming
operation, which will fall
mainly on Elf’s shoulders, while
stepping up the development of
new- activities. That will dearly
require a lot of backing which
the state may not be finally
able to give.
Dodsworth
Terry
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Further
steel
cuts on
the way
WHEN thK Socialist admini-
stration took office abo ut 1 4
months ago it was tempting
to believe that all the dirty
work in cleaning op the steel
industry had already been
done. About 30,000 of the
130,000 jobs in the industry
had been axed, several fao-
toxics dosed and capacity
trimmed. But the first year of
Socialism coincided with a
further market slump and has
seen an acceleration of losses,
not the expected turnaround.
More rationalisation will have
to follow.
The most painful part of
this reorganisation is ex-
pected to fall once agai n on
the workforce. Analysts
believe that between 10,000
and 12,000 jobs need to go
to make the industry fully
competitive at the t arge t
capacity rates. At the same
time it desperately needs to
Inject new blood into its
workforce in order to acquire
the range of skills to cope
with new production tech-
nology; to the past few years
of recruitment freezes the
average age of personnel has
gone np dramatically.
Whether the cuts will be
quite as deep as the guide-
line figures suggest remains:
to be seen. Usinor, the larger
of toe two nationalised
groups, has clearly tried to
limit redundancies in its
recently announced develop-
ment plan. It is aiming to
slim down by about 4.000 jobs
by 1986 from its present work-
force. 'f a little over 30,000.
Sacilor, Jie second of the big:
groups, is- planning cuts of
around 2£00 out of its 27,000 '
workforce.
To sweeten toe redundancy
pill toe Government is offer-
ing the industry more than
FFr 20bn (£L7bn) over toe
next tour years to restructure
its capital base and pump
funds into new investment
This sum, large as it is, is
probably not as much as toe
steel manufacturers . would
have liked; between them,
Usinor and Sacilor lost more
than FFr 6hn last year and
are facing a further big
deficit tins year as welL But
after the planned equity in-
jections around. FFr 18bn
should be available for invest-
ment
According to.. the Industry
Ministry, the. longterm.' aim
for toe two main steel pro-
ducers, which account for
more than 80 per cent of
French output is * .pro-
duction rate of between 22m
and 24m tonnes a year. This
is about toe same amount as
has been produced over toe
past three years of crisis fa
the industry and relates to
a present capacity calculated
at around 28m .tonnes. ■ Bnt
toe target also" embraces a
change towards more high
quality products.
The basis of this switch
towards more up-market
manufacturing has already
been laid through the take-
overs of toe special steels
activities of Creusot-Loire
and Pechiney-XJgine K nhV -
m ann by Usinor and Sacilor
respectively. Both - . - these
special steels companies have
been losing money, like their
new owners. But it is argued
that their presence In toe
bigger groups wfll mean a
better balance of activities
while providing the oppor-
tunity for radical modernisa-
tion and rationalisation. •
Following the mergers the
two steel groups account for
about 80 per cent of French
steel production. It Is
expected that they win split
almost equally toe FFr 17bn
(£1.5bn) of investment funds,
What still remains to be
resolved in detail Is when
the to vestment will go geo-
graphically. Usinor has
already laid down its cards in
announcing plans to develop
its coastal site at Dunkirk,
where It wants to put at least
FFr 5bn into steel plate pro-
duction facilities.
There is also likely to be
a farther development of the
integrated steel-making site
at Fos, near Marseilles,
which was built, like the Dun-
kirk plant, to receive foreign
ore and have easy access to
export markets. But this
plant Is owned jointly by
Sacilor, which will free big
difficulties to diverting funds
away from its Lorraine
plants, where it has invested
heavily in recent years.
Hence Sadler is to invest
FFr 5. film of its total
FFr 8.5bn of new funds in
Lorraine.
These are all thorny prob-
lems for both the Govern-
ment and the industry. For
a Socialist administration
steel Is something more than
just another Industry. It goes
to toe heart of the working-
class movement and any
tinkering with it has to be
done carefully. That accounts
for toe heavy funds that have
already been set aside for the
reorganisation. Whether they
will be enough to buy off
really damaging dissent
remains to be seen.
T.D.
Government control of industry will be unambiguous
A leap in the dark
FRENCH industrial policy took
a great leap into the . dark
earlier this year with the vot-
ing of the Bill which nationa-
lised five of the country’s
biggest industrial enterprises.
For the first tone the state is
moving in force into competi-
tive manufacturing sectors,
where there are no clear-cut
social arguments for public
monopolies and where toe rival
companies are the big multi-
nationals. Nothing comparable
lias ever been tried before in
any of the West's advanced
industrial economies.
This spectacular change re-
flects the Socialist Govern-
ment’s belief in a highly
interventionist approach to
intastrial development. It
argues that Industry should not
be left, as in the classic liberal
structure, to adapt itself to the
conditions imposed by general
economic policy action. All -
governments, say toe Socialists,
interfere with industry In one
way or another; tat under the
new French system the control
win be direct and unambiguous
through the structure of state
ownership.
This concept of state control
clearly owes a great deal to
Marxist notions of economic
management But for many of
the present generation of
Socialists it also reflects a
concern ' for manufacturing
industry as the key element In
a modem economy. Industry is
seen as the main creator of .
wealth, toe essential : backstop
against rising unemployment
and the main guarantor of
France’s position in toe world.
Employment
Partly because France’s
ability to continue generating
wealth and employment has
been fading in the last few
years, toe finger of accusation .
has been pointed clearly at
industry. Socialist planners
argue that toe present crisis
is in large part due to toe fall
in the rate of Investment
reflected in France’s slow
response to some aspects of toe
technological revolution that is
now sweeping across toe
Western worhL
Nationalisation has therefore
become toe means of ensuring
toe investment revival - and
promoting technological
change. Historically French
com pani es are - said to .have
always relied heavily, on toe
state to accept risk; hence toe
Government is shouldering the
burden private, industry, (toe
argument goes) was unwilling
to carry-
Wbile this scenario concen-
trates heavily on toe big groups
controlling toe commanding
heights of the economy, it also
gives a place to toe country’s
small and medium-sized com-
panies — toe PMEs. The Govern-
ment is just as keen as its pre-
decessors about toe PMEs,
which were shown m : a recent
study to have been - toe’ only
companies creating jobs in toe
late 1970s. So far toe PMEs
have not responded by showing
much confidence In Socialism;
bnt toe Government has vari-
ous projects designed to help
them. •
The first is nationalisation It-
self. The modernisation of toe
companies recently taken over
is planned via a big investment
programme which will inevit-
ably create orders for the
supplying industries. French-
based PMEs should be toe
biggest beneficiaries of this
spending nrogramme.
The authorities also believe
that toe nationalised industries
can help galvanise toe small
company sector by giving
access to some of their specia-
lised services. In particular
they are being asked to make
overseas sales networks avail-
able to the PMEs. Much of toe
failure of France’s smaller com-
panies In export markets, where
they are markedly less involved
than West German competi-
tors, is attributed' to weak dis-
tribution. Onlythe big French
companies tend to have these
structures already in place.
Linked to this effort for toe
suboontracting type of small
company, the Government is
aiming to stimulate toe crea-
tion of innovative new PMEs.
The main growth in the small
company sector, it believes, has
come recently from toe estab-
lishment of businesses orien-
tated towards new technology.
Hence there wiH be increased
aid to fund research workers
is toe PMEs and additional
funds for bringing new products
from the drawing board to toe
production line. Throughout
toe country toe authorities are
setting up advisory committees,
manned by experienced busi-
nessmen, to help newly estab-
lished companies; big compan-
ies are to be encouraged to help
managers who want to set up
their own company to exploit
a new product.
The central theme threading
through the action for both
big and small companies is the
need for investment There is
no donbt that expenditurn on
new plant in France steadily
lost pace in the 1970s and has
entirely stalled over toe last
three years. Last year industrial
investment fell by about 3J5
per cent in real terms.
The question now is whether
— and if so when— toe Govern-
ment poKcy actions Will lead
to an investment upturn.
As in other areas there are
external constraints imposing
limits on the Government pro-
gramme. On the financial side,
for example, budgetary pres-
sures ha' e screwed down the
amount of new capital funds
no 1
1981
1982
Consumen^Goods for final con-
sumption; Intermediate— S«nl-
finished products and industrial
raw materials
available to the nationalised in-
dustries to around FFr 9bn this
year. A very large proportion
of this will go to the steel in-
dustry, just to keep it ticking
over. By contrast, toe Industry
Ministry is believed to have
asked for around FFr 15bn.
This would have enabled a more .
widely spread expenditure,
with more emphasis mi new
growth projects.
Whatever toe limitations on
toe Government’s power, how-
ever, it is clearly determined
to push stabbondy on with its
pump-priming in toe 'national-
ised sector. According to M
Pierre Dreyfus, the former
Industry Mini ster, toe new
investment wave should start
flowing through these big com-
panies within a matter of weeks.
It is expected to accelerate
next year, as the new manage-
ment teams settle into place and
develop their long-term plans.
The main priorities for tills
spending fall into two distinct
areas — investment in sectors
which badly need restructuring
to face up to international com-
petition and investment in the ..
new technology: industries
where there is a premium on
Innovation. Steel and chemicals
are outstanding examples of
the first type of industry; elec-
tronics and computers of toe
second. In all of these areas
Government-owned companies
dominate the scene in France.
Alongside these projects,
centred on toe big “national
champions,” the Government
has announced a number of
sectoral plans designed to
stimulate particular industries
in crisis.
The most important of these
is for machine tools, a
notoriously weak sector in
France but one which is now
evolving fast with too develop-
ment of electronic control
methods. It is hoped to re-group
companies and help investment
through Government ordering
schemes and research backing.
Simiiariv, efforts to modernise
toe textile industry are being
encouraged -by reductions in
social security- payments which
will help the companies
generate the cash for invest*
meat.
In all of these projects there
is a big element of gamble for
toe Government. It is handing
out money to private industry
in toe hope toat it will be used
in a way that will make com-
panies more competitive. But it
is having to rely for success on
owners and managers who are
largely hostile to socialism.
Indeed, many,. of the companies
claim bitterly, that toe new
handouts scarcely compensate
in most cases for extra charges
levied on them.,
This difference of philosophy
makes the nationalisation pro-
gramme all the more important.
The success and development of
the big companies would
generate orders fir the PMEs —
particularly in machine tool and
engineering sectors — and would
also re-create the general
dimate of edifidence in
industry which has' gradually
seeped away ow the last
decade.
The nationalised sector
would then have wbjt President
Francois Mittemwl describes
as a “ locomotive " effect on the
zest of the economy . But for
toe moment the engne is only
just lurching into movement.
It is impossible to say whether
It will be able to build up
sufficient steam in the next few
years to cany off the gamble on
which the Gorernment
embarked a year ago.
T.D.
INFORMATION
FOR SALE
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.sa*i Uiliwiiiit.iL.
Financial Times Wednesday July 7 1982
GARDENS TODAY
Defence against clematis wilt
FT COMMERCIAL LAW REPORTS
‘Unconscious bailee 9 liable for damaged goods
AVX LTD v EGM SOLDERS LTD
Queen's Bench Division (Commercial C onrt): Mr Justice Slaughlon: July 1 1982
: v; inr robin lane fox
APTEK TBE first flush ot.roses* April in which the foot of a wall extra stems down on to the soil
i bem scarc6,y M * *°P- " peg man into contact with
around all summer, of co^. Experts also suggest that you some sand and light compost
but I seem to grow those which spray your clematis in spring, The steins ought to root into
flower from July onwards, and summer and autumn with Ben- this mixture, giving yon a
the wonderful ruby-red Niobe,
which was bred in Poland by a
some sand and light compost customer of those- fine clematis
The stems ought to root into specialists. Fisks of Westleton.
this mixture, nvinsf von a ott the Suffolk coast. There are
Where a person receives
another person's goods believ-
ing them to be his own, he Is
an 41 nneonsdons bailee;'’ and
If circumstances are such that
he has a duty to discover that
the goods do not belong to
him, he then has a duty not
to damage or destroy them.
by carriers employed by AVX. of Pointer at pages 227 to 228. On. hearing the evidence his
Then an error was made. Tho who submitted that if the car* Lordship did not form a favour-
carriers delivered the whole lot dioal attributes of bailment able Impression of the siandard
to EGM. were not fulfilled, there could of management at EGM. Some-
The people at EGM did not be no bailment and the where in the organisation there
notice that besides the rejected defendant was not liable as a was a breach or duty in not ais-
solder spheres with a gross bailee, though he might be covering that 21 of the ca ^® s
weight of 37 kg, which were to liable under general lortious contained capacitors. the
be scrapped, they also had 21 principles. Two general prin- property of AVX. before an
cases of finished capacitors ciples of bailment appeared to order was given to scrap them.
placed trellis. I also notice down wfifcDo not sepuirta dose
.those which look ready txj die. of Benlafe over your plant’s top- M survwaL
Most growers of clematis growth and then leave it In-
■.know that they risk the lethal 5tead » ** to* the
.complaint called wHt. It is a P 1 ® 111 to drench the bot-
-conmxHX Hinoaco and there is I tom two feet or so of its stem, ground when you lift your plant
believe, no core; Suddenly,’ a T** - to . soa * to® tougher wood out of its black polythene con-
Jbealthy dematis will shrivel main stem, top, as you tarner. . Often, wilt destroys
plant, you double its jackmanii, which produce such
ii vivoL a woci; of flower from now until
I also suggest that you plant a"*®** “d J® ^ ed . 50
S bS too or **1*3 OTBr flovrenn S
S£ rao^iow ^^ ft r i j^f^L d p ^ inters
ten you lift your plant aDd to Jnne ^ order3,
black polythene con- . Clematis axe not just
Often, wilt destroys climbers for walls. Many like
action for damages for
negligence against the defendant.
le The in resu S k P v^s that in the The modern approach was not ^ something was amiss. He
1 • producer of skips there were 12.1m solder to clarify the ivpe of bailment, should have called a hall when
soiaer. spheres and 891,185 capacitors of or even to ascertain whether it apparently new and carefully
,-bt^otb — -j 30 different types. It would be was truly a bailment at all. in cd ■ E°nds , wer S
HIS LORDSHIP said that AVX, vastly difficult to sort tho indivi- order to determine.- what duty of l J* rown * nl ° the skips. He should
a subsidiary or an American {j ua j types from that mixture. care, if any. was owed to the havc Jomted at the
corporation, manufactured AV x now claimed damages true owner. addresses on the labels or at the
capacitors, small delicate pieces fj-m EGM for the market value . u , , . DD r delivery note m the last box.
is possessing. . . .
ever, ought to have ohserved
and die at .its - extremities. ; wH : ft*d. Hat its crater layer, only the top growth, leaving to spread over otter plants, 3^522^^ from EGM for the market value
leaving you with top growth, tends, to -split as summer pro- healthy roots below ground their natural habit in the wild. computer ° £ capacitors.
■which has to be cut away WHt ceeds. i suspect that wilt often from which a new stem will An old variety, called durandii, ^ sophisticated weaponry n The J^st question to be
strikes most often in the enten3 throat this gap in. late appear next reason. Never is more healthy and happy had a distribution centre" in deci<led was whether EGM owed
AVX now claimed damages true owner.
am EGM for the market value - In Houpfitaid « Rif
addresses on the labels or at the
delivery note in the last box.
Had EGM discovered that the
weather we have had recently, " sannner >
hur r y to throw a wilted plant when grow over a shrub.
-a long, dry spell which slows . A spray with Benlate every away, but be quick to burn its welcome its deep, violet flowers
■growth, then extreme humidity three weeks will help the base
which causes the plants to shoot- -of any clematis. Some of the
diseased upper half.
Having watered, sprayed,
among dreary peonies out of
season.
Aldershot.
EGM produced solder.
“ . . ( Luxury Coaches j Lid [1962] 1 21 ^ses vveTe nol ilfi prow , rtv
^ "!• 69 , S .. LOrd 1 Ju " tice it would ih™hro craK » to
^Bd was wbether EGM owed itrmerod said: . ._ 1 have an unconscious bailee, and
any, and if so, what duty of
j n care to AVX- Mr Barnes, for
April 1979. AVX ordered 60m EGM, said that they owed no “gross negligence* because
always found some difficulty in bccom? &n involunlarv bailee It
understanding just wtaal was musl be ^ duty of an i nvo hin-
‘Brnmi hn/“i 11 . , .
spheres of solder from EGMr*Of at ^ or , at an >’ ^ at toe standard of care required in J^ouT^fnquiiy 0 of 1 " the ^rue
the 20m which were delivered, toey wonld only be liable for a ^ase of bailment, or any other owneri unless they were of a
very quickly before enough wild foams with smaller flowers boned and layered, you may or j end on a happy note,
-moisture can support them. seem far less prone to attack, may not like to add a prayer as Eight years ago, Fisks sent a'
12.1m were defective. AVX com-
plained to EGH and sent . a
gross negligence.
type of case, is the siandard noxious character.
plained to isuai ana sent . a 7^ station was what was demanded by the circumstances ^GM was in. breach nf dutv
sample. EGM agreed that the called “undisclosed or surrep- <jf that particular case . . nv-ud in AVX in failing to
goods should be rejected, and bailment on Pahner on Following Lord Justice .Fotr.,.. ji, a . »j, e ennaeitors were
wras informed that they would Bailment at page 227. The author Ormerod. his Lordship held lliai ,j,„ . ,>„prtv of A\*X- and thcre-
be returned by road transport. als t> referred, at page 22S. to an unconscious bailee, before a ri, M . u m-T« m 'hrei'ch of dutv
On September 13 AVX the “deceived bailee, or bailee dealing with the goods, must d . 4v*X hv eausine dam-
despatebed the defective spheres by conceftlmenL” use what was in all the circum- __ 0 ln B
in one box to EGM. The box Those expressions referred to stances, a sufficient standard of av\ -»sked -or >ud«*nent
I have just lost one stem on These can be left in peace. If welL The -risks wiH never deter ctrawberry-nink and rose- 1 sample. EGM agreed that the called “undisclosed or surrep- of that particular case . .
■ alJ 1 r. I ^ .. - J BMT Omv Mb. tWfllMtn nlnb AM it nv. IW iw avnwrnff nour irlnailu — . J , r I .u .1, t. i ..j . Firinnf KnllmAM** in Dn1«.» -T-. .. - r ■ T.
-an old Marie Boisselot to mid- . you grow the prolific pink: and me from growing new varieties flowered clematis to a customer
June wilt, but two nearby iwtoite montana varieties, you because most have given more ^ the Argentine, who wrote
clematis on a very wet patch of are unlikely to be too troubled, pleasure
-•ground never seem to suffer Clematis are no longer cheap, clim bers.
from an attack. I suspect that costing £4 or more at a The Id
The king of clematis.
other back to claim that he had a far
better variety. He sent them a
s, of plant 'now known as Dr RuppeL
owed I a AVX by causing dam-
age in the givids.
AVX asked for judgment »n
they draw up enough water specialist nursery, whit*, offers course, is Christopher Lloyd, after him. It goes straight to had tiireT laMs^th EGlTs at S S?Snn£ lSu! ^certain Sat they were ^ ^ !,sked iud^ment in
to <mr M t.df.pri« -rtose book on dmatis ents a ffietopofmy.list.availotyontii jSioSlS* SSSSnSf?dSlSJ iog ttat wbfch pS^ot his ov,n a, goSl h0> '
-sudden, spurt.
against a proven early death clear path through the different deep rose stripes against a pink
sterlin"
address, and contained a delivery* tog that with which the preseat truly his own goods. va i uc ' 0 [ sterling had fallen
So, to prevent wilt soak your from wOt ‘Elsewhererhow do varieties and whose nursery back^xraud, which flowers in “ At' the same time AVX wished where alpem" had^piods ^ *S his faction 1 am" !>,nCe ^ ******
plants’ roots with water over the you know that you are not buy- from his gardens at Great May and Jnne and again, more to send 21 boxes of capacitors possession but beheved, con- SminUh Z' ciMdard of care Th* imM m.rntir
next or feo. Climbere tog a plant with wilt in it Dixter, Northiam, _ Sussex, modestly, in Wtnmm It semns to i its ^^distribution rentre at trary to fact that they were his V as that the gSxis had been n com untied m England."
Qne circumstance to be taken against 1 he dollar s.ince the chum*
EGM . -without where both iiurtie.s carried on
‘ at the base of a wiD are usually already? There is no guarantee, suppldes good plants from its list, to grow with the greatest ease Aldershot Those were finished own property. delivered to EGM without whore bath narties carried on
"standing in soil/ which Is far but I urge you, if possible, to At the moment, I have eyes for and is a welcome reptinder that goods which could not, by any No individual at EGM was invitation' ‘and. by a mistake' on business- The loss was not felt
more dry than *ro remember, choose a plant with several the sky-blue Porie d’Aaur, not every claim from the stretch of the imagination, be consciously aware that the extra tj,e part of- a carrier employed n pr could appropriately bo tnea-
The recent
'up for ifae
have not made side-shoots or stems near the
months since soil leveL You can train these not always an easy plant, and
Boisselot, Argentine is far removed from I said to look remotely like solder 21 cases were the pro.
by the true owner.
sured in 1>.S. dollars 1 Judgment
spheres. Their gross weight was anybody other than EGM; and Another circumstance to be should be given in -.terling.
10 times as much as that of some at least of the EGM taken into account, pointing in Judgment for £39534.
solder spheres. employees believed all 22 to be the opposite direction, was that
Those 21 boxes of capacitors the property of EGM. His Lord- the goods had very recently r°rA\ X:J
were each marked with three ship would describe tbe situa- entered the premises of EGM. * Co>
labels addressed to AVX at tion as one of “unconscious u was not a situation where For EGM:
Aldersbot A delivery note was bailment.” goods had been in EGM's posses- (Smiles & I
TELEVISION
LONDON
; 6.40-7.55 mi Open University _ Aaerbaidjan. LL10 Stru gg le
-(uhf only). J.00 pm News After TrvniO , l"lt , Q Beneath The Sea: A look at the
Noon L27 Regional News for UlllgllL o sea urchin that resembles a pin
England /except London). cushion rad the clingftsh who PACINC
London art SE: Financial ’A good escapist night, with pride of plaee going to Playhouse SSStira
-Report. 1M King RoDo. 1JI5 on BBC 2 at 9^0 v*ich has Paul Schofield and Geraldine McEwan tSSmT " liOO Well Tell You BV DOM,hHC WIGAN
-Bric-a-Brac./418 Regional News getting their beautiful vowel sounds arotmd Noel Coward dialogue a Story. I2J0 pm Rainbow. '
•for Enel am (except London) to Come into the Garden Maud, a third of tbe triple bill. Suite EL30 The Communicators. LOO ■
am xxiX'bhnr,! aar jf»v to three keys. (Another on e-act er, A song at twilight, can be seen News with Peter Sissons, plus ANOTHER intriguing, confron-
4JMI may arnooi. joey ana rr- ii na i »«• ure i «« m
a Open University
3.00 pm News After
Regional News for
/except London),
a SE: Financial
) King RoDo. 135
9^0 am World Famous Fairy made out and enclosed in the
Tales. 9.45 Patterns. 10JL5 last of the 21 numbered boxes.
Judgment for £39,534.
For .4VX: Jonathan Hirst (Cl'jdc
Jonathan Barnes
Tonight’s Choice
Mr Barnes submitted that it &jon for years, which it might
was not really a case of bailment well treat as its own with little
goods had been in EGM's posses- (Smiles & Co >
sion for years, which it might ~ na ..:-_
uiaIT tro*it ne ttc miln with .Tiff Isa TiJ ttuCuCi 1/dVltS
All 22 boxes were collected at all. In that he had the support thought or inquiry.
RACING
BY DOMINIC WIGAN
Borrisler
ing the Ward Hill Handicap on Half an hour after the Child.. For the Princess Maiden
the way to more important sue- Stakes, that precocious juvenile Fillies Stakes, a division of
cesses gained through wins in Horage will be attempting -to -which went to Orcus Ring in
Kempton’s International Stakes extend his winning sequence to 19S1. backers should he wary
and in the Coronation Stakes at seven races in the Anglia Tele- of. opposing that nqw retired
Royal Ascot vision supported July Stakes, filly's stable companion Krakow.
An attractive chestnut filly by The McCormack juvenile The Stout e-trained juvenile has
’Redhawk.
“ 5JL0 Wildll
Npw*rwnnrL 011 Friday). Tonight’s play contains the last Hue Coward ever FT Index 1.28 Thames News tation for the Child Stakes is Habitat out of the Kythnos showed the utmost gameness in been working in fine style of
. ewsru wrote for himself to say on stage — -“Goodnight sweetheart" with Robin Houston. 1.30 Look to prospect today at Newmarket mare Areola, Chalon is clearly holding off Kafu in a Coventry late and is preferred to fellow
L _ . , A . _ Who’s Talkmg^ 2A0 After Noon for the fillies, race on the July entitled to top market position. Stakes finish dominated by the newcomer Gaygo Lady.
humour rather toan vrit “ -S ^Reviated.^ 2A5 Racing Course has brought together the However, at anticipated odds of pair: but I somehow doubt him
repeat of a Oinstmas edition of More^mbe mdWise • "Jtou ean season’s most improved second around 4-7, she makes little giving weight to Prince Reymo
have more toan eno^ ^ toe ^dh^led^ by tu^gm t 3.M rad 3.35 rares. MO Three season filly, Chalon, and the appeal in a seven-runner event on this occasion. A less
onejif their tmsucressful feature films That Riviera Touch earlier j , 0 ^- Jer sey Stakes winner, Merlins in which she will he faced with severely tested colt than
in the evening on BBC1. Charm. the task of conceding 3 lbs to Horage. Prince Reymo made a
ioaal News .Magazines J“vc more than eno# of the ^pdtoteble tiummgin to 3A5 rai^. MO Tto®e season filly, Chalon, and the appeal in a’ seven-runner event on this
Itionwlde. 2?^ theu ^ nnsuct ?^/ feature films That Riviera Touch earlier Jersey Stakes winner, Merlins in which she will be faced with severely
Itionwide. to the evening on BBC1. mSFSSSS^^^STa ^ _ , the V* of conwd L n S 3 :
Charm.
Wednesday Film: There are two new series opening. BBC 2 allows Ida St Clair documrataiy on the making rt v °n the face of things Chalon Merlins Charm, who returned successful return to the mini-
at Riviera Touch," to wow no— at 7JS she introduce -Hie Travel Show with the film of the hit stage musical shouId have ^mgs very much to somewhere near her >ast with mum tnp after a six-furlong
.* » . ■■ 1 “ ^ !v. . ... _ . . nvtrii « A mU ■* >*or Alim lira 17 TJin q irama ninonee at tfia rnxrcl ciiPriPcc at T?ncnm whpn woarincr
irring Eric Morecambe Desmond Lynam, which is all about the travel industry. On BBC 1
fad Ernie Wise. teams from Oxford and Cambridge compete, to an initiative test,
RIO tow Gftt Out Of That a cerebral Outward Bound course, in Now get out oftoat.
8.30 flow Get out w lhat. somethfag -to Disguise did not quite have the style of the
m teams accejrt the nowl in, its first episode but now that the exp laining has been
enge, to cope with the ^ one j t should take off nicely.on USE ' !!
known for 24 boras in ANTONY THORNCROFT
/unknown for 24 hours in
/the open.
.Of Parity ' PolitieaL Broadcast
I by ’the Caoservatwe
t Parly; -■
Jo Chicago Story: A- young
| lawyer finds herself the
I target for death. ..
10 Athletics from. Oslo,
Norway; The Bislett
Games. - . . v - -
20 World Cup Report
(5 News Headlines. : -
III IBA regions as London
pccept at the foltowing times:
ANGLIA
6.40 am' Open University.
10.05 Gharbar.
10B0 Play SdiooL
12.30 pm Open Umversity.
SJth A Night at the Pictures.
&55 Six Fifty-Five Special. ■
740 News. .
7^5 Tbe Travel Show. -
8.05 Elastic Music. ...
Tfrumfarbin**. lia® Th* Advantunu
of Pnntay. 1JO pm North Nowa. B.00
Summer at Six. 11^5 So a did LsWioaii.
12.15 am North Haadftnas.
B.3S am Mwnbly. 9.4S Inwmattomil
ins. 10.10T Hunsiy H>». 11 - 50
lanoo. Wanoo- 120 pm AngHa Nawa.
GRANADA
8JL5 The Man Alive Debate.
9.00 Butterflies.
930 Playhouse: Come Into
The Garden Maud.
10.30 Cartoon Two.
10^0 A Party Political Broad-
- - cast by tbe Conservative
■ Party.
10.45. Newsnight.
SCOTTISH
. 10.00 am wndamoss Ahvo. 10.45
LMa House on the Prairie. 11J0 The
Daily Minrar USSR Gym n a sales Scholar.
“Annie"
5AS News.
6JW Thames News,
6J5 Crossroads.
7M Where There’s Life . . .
7J30 Coronation Street
8.00 Best- -of British: The
Morecambe rad Wise
Show
9.00 Something in Disguise.
Richard Vernon, Ursula
Howells ln "A New
Life.”
10.00 Party Political Broad-
cast by the Conservative
Party.
10.05 News
10J35 Janet and Company.
Starring Janet Brown.
1L05 "Fright,” starring Honor
Blackman, Susan George.
12J5 am f Sit Up and Listen."
Because of World Cup cover-
age, programmes will be sub-
ject to alteration.
Coon to CoMt- 1145 Jazz and Blues.
12.20 am Company.
TYNE TEES
9.20 am Tha Good Word. 9.25 North
her own way. The Warren a game success at tbe royal success at Epsom when wearing
Place fitly has gone from meeting,
strength to strength during the All is
season; she followed a win on better watched than one in
the Rowley Mile course by land- which to take financial views.
eeting. down Fire-Thatch in the
All in all it may he a race Windsor Castle Stakes at Royal
tter watched than one in Ascot three days after Horage’s
lich to take financial views, victory there.
NEWMARKET
2.00— Krakow***
2.30 — Suggestive*
3.05 — Chalon
3.35— Prince Reymo**
4.10— Thug
445 — Feeling Great
BRIGHTON
1.45 — Keep Me Waiting
2.45 — Wldd
3.15 — Barnet Heir
RESIDENTIAL PROPERTY
SWITZERLAND
AIGLE + VILLAKS /
FOR SALE; Exclusive
freehold property, direct
COMPANY NOTICES
from the Owner Builders
seeHbj.
thfe Final. 1.20 Scottish Nhm. 5.15 M m.v.™
Tist.ma TrtM. SJO Crowds. 6.00 S'S
About Anyfis. 11.65 Th* Moirta 930 am _J h ® ®- 3S Soachd Larttion. 12.15 Lata CaH.
»«■ «" Vi ~- » JSJBS JSJfit , TCW
/'CNTRAI Street. 1^0 pm Granada ftaoons. 2.00 I SW
bblUraiL Pytunp on tha Gtyte. 6J» Thia la Yoor o^S mm S.iama Sweat. 10J5 I
4r«ri*nrf * Tiuhv oT# MB European Folk Telas. 10.10 Citiaa.
« K i«fSn 11-45 1, 00 Suivival. lias Stingray. 1150
Saachd Uitiran. 12.15 Ute CaH. MumWy. 1-ZO pm Nor* East N«ws.
1JS Where the Jobs Are. 6.00 North
TSW Eaat News. 6.02 Crossroads. 625
- _ . Northero Ufa. 10 J5 Norch East News.
10.10 am Paths to the Future. ll.OOt Right* «L05 ,^§^^ 630 Granada iK »£ Sara «,.rry^t.pda near,
o pa long Cairtdy. 1 JO pm Centra Raporaa. 11.45 Paar. Dmact,™. " SO Sally aid Jab.. 1 JO p A TSW «
aws. 2-00 Central Newa at tha Roya Rsomnal Newt. 5.15 Gua Honaybun’a ULSTER
Uiow. 3LO Central Nows at ttis Roy^
Show. 6-2S Central Naws. 11.45
taplay: Oragnat. .
CHANNEL
11.50 Sally and Jake- 1 JO pm TSW
Regional Newt. 5.15 Gua Honaybun’a
Magic Birthdays. 6.20 Crossroads. 6.00
Today South West. 6J30 Talaviavw.
ULSTER
1.20 pm LunCfrtinw. 4. IS Ulnar
g_55 m 3^-1 Contact. 1OJ0 Beach- B.40 Spcrtsweek. 10.37 TSW Law News. 8.00 Good Evanmq tMsiar. 10.34
| rUANNPI comber*. 10.45 The ExvwttHnary
UnWintL PbopJ# Show. 11.10 Tha WorW We
L Live In- 11-38 Marilyn Baker Strog-
b”. 11J» Tha writer. 1.20 pm HIV New.. 6.00 HTV
10.45 The Extra ortHnary ”° n “ ^ Strow ’
„ , u . 12.40 am Poatsonpt.
Ulster Weather. 11X5 Naws at Bed-
time.
YORKSHIRE
B*d. 10.00 Lite Franca. 11-45 Die wmar. pm ni» 9J0 «n Sesame Street. 1030 J*«m
Moms Carlo Show. 12^0 am Nawa News. UL35 HTV News. 9^0 am Spread Yoor Wing*. 10.00 of Star Command. 10.55 Paint Along
and Weather M French. HTV Cymra/Wala*— A* HTV West Survival. 10J25 240 Robert. 11.15 Ears- with Nancy. 11 JO Hemiloids. 11X0
and Weather m French.
GRAMPIAN
except: 11.10 am Vicky the VHring.
Folk Tale*. 11.30 Fengfaca.
12.00 Ty Bach Twt. 4. 2D pm Hara’a 1.20 pm TVS Newa. 5.16 Watch Thi*
Dories. 11.55 Captain Nemo. 1J0 pra
Calendar News. 5.00 Calender [Em ley
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Financial Times Wednesday July 7 1982 _
management
EDITED BY CHRISTOPHER LORENZ ^
The man who must engineer a miracle
The director general of Britain’s new Fngin pering Council talks to Christopher Lorenz
KEN MILLER is a taciturn but
persuasive man. The fact that
nrnny people should consider
his new job to be one of the
most thankless in Britain
troubles him not one iota —
except insofar as they might
mistakenly think it was also un-
important. They may soon
change their minds.
Within days of taking over
as the first director-general of
the new Engineering Council. -
Miller yesterday plunged into
the first of the council's many
unenviable tasks: persuading
the country’s 50-plus societies
and institutions of engineers to
accept its plan to start taking
over the registration of
engineers in just six months*
time. This is 18 months earlier
than many of the institutions
expected; they had fought tooth
and nail in the first place
against the Government's de-
cision to establish the council.
Acting as a cohesive
Influence over the engineering
profession's specialised institu-
tions — mechanicals, chemicals,
metallurgists and so forth — is
only one of the roles Dr Miller
has bitten off for himself. To
fulfil the remit handed down
by the Government after over
a year of bitter infighting over
the conclusions of the Finniston
Report into the status of
engineers In Britain, he must
also try to do the followings
• Improve the quality of
engineers, especially by in-
fluencing the way engineering
is taught in schools, colleges and
universities.
• Persuade Government itself
to shift more resources into
engineering.
• Secure the council’s fina^ptaj
viability beyond the £lm three-
year start up contribution pro-
vided by the Government.
Tall order
• And, perhaps hardest of all.
start to overturn the widespread
social antipathy towards
engineering which has been
built into all of us by more
than 150 years of history and
"liberal” (as opposed to practi-
cal) education.
Even with a round! member-
ship of some highly influential
individuals, it is an enormously
tall order for Miller, his chair-
man Sir Kenneth Corfield and
a staff which will eventually
number at most 30— less than
half the number that was
mooted af one stage.
Bnt he Is full of enthusiasm
for the task in hand. ** I reckon
that things are changing in this
country." he says with a gentle
smile. “Some of the sacred
cows are being shaken up. Just
look at the changes in labour
relations, or the impact of the
UGC cuts on. the balance of
university courses. I think the
same sort of thing can follow
from Finniston. A lot of people
will howl and not like the
things being done. But we are
determined.”
As one of the handful of
industrial members of the UGC
(University Grants Committee),
whose cuts last year have in-
deed provoked howls of pro-
test from the university
establishment, he knows .what
he is talking about: his mild
manner cloaks a steely resolu-
tion, as the professional
institutions are finding out.
But what about the over-
whelming problem of sodal
attitudes: the notion that being
involved with engineering is
“ getting your hands dirty," and
that people who are engaged
In “thinking rather than doing"
BOARDROOM BALLADS
THE HIDDEN AGENDA
No human heart, they say, am yearn
For what the eye does not discern;
Except, that is, dozen in the City ,
Where the Inrrisibles Committee
7s stirred to hidden depths of yearning
By what we cannot see we’re earnin g.
★
And floating, as their name befits.
Unseen, above our deficits.
They conjure from the upper air.
Just like the man who wasn’t there *
Mysterious surpluses of trade
From products which were never made.
★
So, when the nisibles ore slipping.
Or sterling dangerously dipping
Into its periodic voids.
They calmly levitate from Lloyds,
Or unseen royalties and fees.
The means to raise us from our knees.
★
Thus, month by month, they float the nation
By acts of prestidigitation.
Materialising from the skies.
Below the threshold of our eyes.
The cure for Treasury dejection
By extrasensory perception.
★
I close my eyes to get a fleeting.
Dark illusion of them meeting,
With vague, impressionistic spasms
Of men outside their ectoplasms —
A chairman, and his ghostly members
With poltergeistic nonagendas.
★
And; opaque as the general scene is,
.They pull, like latter-day H oudtnis.
Before our eyes see' what they’re at,
The earnings rabbit from the hat;
Thett offi into the dark air gripping
Insurance premiums and shipping!
★
They do say there by passing strange
Doings at the Stock Exchange,
Where, disembodied at the table.
They’re non-corporeally able
To do extraordinary feats
With our invisible receipts!
Bertie Ramsbottom
Next week: The job description
(to quote an eminent writer on
the subject) are somehow
superior? How can Miller start
to chip away at the public
image of the - boiler-suited
engineer with a spanner in -his
hand, a notion which would be
laughed out of court in
countries like Cerminy, Italy,
Sweden and Japan, where
- engineers are highly prized
members of sodety?
“You won't raise the status
of engineering in sodety by
shouting,” Miller says
characteristically. “You'll get
it accepted by helping people
to realise that wealth is created
by -making things — and that
engineers do a lot of the creat-
ing. The ’ penny is already
beginning to drop that we need
to look after the people who
create the wealth.”
It’ is not surprising that the
Engineering Council's members
—a' ’■ mixture of businessmen,
trade' unionists, academics and
others— made Miller the unani-
mous choice for the job.
A . quietly genial man who
will celebrate his 56th birthday
in three weeks’ tim e (without
much fuss, one assumes) he has
the' best possible catholic pedi-
gree. He graduated from Trinity
BUSINESS
PROBLEMS
BY OUR LEGAL STAFF
Visit to
debtor
Is there any legal impediment
to a creditor calling upon a
bard core debtor at the lat-
ter’s place of employment ?
There is no legal impediment
bnt you may find that there are
a number of possible obstacles
and risks; thus the employer
may not permit you onto, or to
remain on, his property suffi-
ciently long to accomplish your
mission and you must be most
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to a claim in defamation, or to
cause a -breach of the peace.
No legal responsibility can be
accepted fey. the. Financial Times
for the answer* given in these
columns. AU inquiries will be
answered by post as soon as
! possible.
[ ' ' ;'V
Hail in C^nbridge in 1846 with
a first in mechanical science
and a distinction in aeronautics.
After gaining Ms doctorate at
Aberystwyth In the requisite
three years (none of this latter-
day fashion, much frowned on
by the grant-givers, of taking
five or six years to complete a
doctorate), he embarked on
what was to become a 25 year
career In IGI. . .
In what is now familiar
Japanese style, he moved
through design; production en-
gineering and other fields
before ending up with responsi-
bility for co-ordinating all ICfs
engineering activities. In the
middle he helped what is now
British Bail to manage the elec-
trification of the London to
Manchester line, and to origin-
ate the Liner train concept
Eight years ago he left to
become managing director of a
small part of APV. a public
company which makes a wide
range of process plant, especi-
ally for the food and drinks
industries.
By 1977 he was managin g
director of the APV groups,
and by last year of aS of it —
in charge of £293m worth of
sales and 5.500 employees. In
this role he not' only had to
spearhead the rapid application
of electronics to the controls
side of the business, but also
had to deal with the problems
created for long-term invest-
ment projects hr APVs
dependence on the stock
market: “ It forces yon to fhfafc :
short-term,” he complains,
along with many engineering
company executives on both
sides of tiie Atlantic. ~
He took on the Engineering
Council job partly because of
tiie obvious challenge it pro-
vides, and partly because he
felt be needed a change. “Once
you've done three or -four
years of supervising, the same
thin g Comes up again and a gain
— it coincides with the business
cyde. You lose a bit of your
edge.”
He is hardly likely to do so
at the Connell, unless reaction-
ary forces in the engineering
profession, Whitehall, . the
educational establishment, and
sodety at large succeed in
swamping his initiative.
Miller admits that much
needs to be done to improve
the quality of training at all
levels of engineering: from
engineering technicians up
through . technician engineers
to the cream, chartered
engineers (including grad-
uates). The apprenticeship side
-r> ■ :\ -
r } -A- ■ ••• - Vvv '^v
. • vvv A'
> v-'V’ .
•; V;' ' '* ' ;v
“r ’W' -
t- '. - -■
"Ashley A s! wood
Ken Miller on the shopfloor, he has to chip away at
the public Image ef tin boner-suited
in particular is “creaking at
the. seams." he points out.
He is especially critical of
the -attitude of mind engend-
ered by most. existing courses,
at all levels of education. “The
relative cost of doing things
two different ways is hardly
ever touched on,” he says;
money is used as a scale of
measurement far less often
than engineering elegance.
Hence, in part the debilitating
syndrome in industry of the
engineer who can ' only think
technically. Not only does it
harm the performance of his
company, it reinforces the
image of the engineer as com-
mercial ignoramus.
Just as serious, says Miller,
is the kudos universities attach
to research as opposed to pro-
duct design and development
“It is just as intellectually
demanding as R and D itself —
and many more man-hours are
spent on it in industry. But
even there its Importance is not
sufficiently appreciated, so that
it’s often skimped.”
Miller may tilt at many of his
fellow engineers, and at the
educational system which pro-
duces them, but he goes out of
his way to stress that he thinks
some people’s criticisms' are
overplayed. Good British engi-
neers are “very good," he says;
the problems lie with the others.
On the other band, be Js
damning about the way that
some British companies use
their engineers. " The ones
which didn’t know how to use
them are fast going to the wall/’
he claims, citing much of the
car industry as a ease in point.
Miller’s discreet style, and his
emphasis oh industry's need to
put its own house in order as
much as possible, will assist his
lobbying in Whitehall and else-
where for a greater, though
highly selective injection of
government funds. He particu-
larly supports the Department
of Industry’s Product and Pro-
cess Develonment Scheme, for
example, and the Manufacturing
Advisory Service. But he would
like to see more government
funds apolied to product de-
velopment in industry.
Enthusiasm
As for the promotion of en-
gineering In society at large,
he intends to build on the two
competitions whose running he
has taken over from the DoL
the “Young Engineer of the
Year,” and the “Prince of Wales
Award for Industrial Innovation
and Production”, (which re-
ceives a lot of coverage on BBC-
TVs “Tomorrow’s World”).
Other initiatives may follow,
but in tiie meantime Miller
draws encouragement from, the
enthusiasm schoolchildren are ■*
showing for r microcomputers. :
“It’a very useful because it will -
help to buildr bridges between ;
the sort of peoplfr who become,
innumerate arts graduates and-
illiterate science and engineer- -
Ing graduates."- • •-
ljest anyone should think he
is trying to shore up a dying
profession Hfce King Canute .
forlornly attempting to arrest
the inevitable progress of the '
waves, Miller retorts that .
engineering is “not dying at all,
but shifting.” Though there Is
some decHne in civil engineer-
ing, he sees exciting growth
prospects for engineers In elec-
tronics, bio-technology factories
and elsewhere. "You’ll still
need mechanical engineers in all
these areas," he points out
Though he concedes that there
is an alarming number of Indus-
tries at the top of the “S-curve ”
an the edge of decHre, Mfflert;
vision of the future for the
British engineer is refreshingly
hopeful after all the gloom of
the last few years. Bui first the
“engine of change* which
Finniston called fo: — the
Council itself— must get Into .
gear. With Miller at tha wheel,
it must steer slowly ups mine
field-ridden gradient which is
set at about 89 degrees to the
horizontal. ; . J c .
TECHNOLOGY
Audio disc system
EDITED BY ALAN CANE
A rare glimpse of the Paris work on electronics
Step nearer better French way to beat the nasty shocks
milSlC BY GEOFFREY CHARL1SH
A.' French Government But a helicopter attempting, to; which is electxomagneticaUy t ■ - — ■ \
BY ELAINE WILLIAMS
PHILIPS, the Dutch electronics
group, will take a step nearer
the introduction of a new audio
disc system next month when
it begins pilot production of the
disc players at Us audio factory
in Hasselt, Belgium.
The compact disc, developed
jointly by Philips and Sony in
Japan, should appear in the UK
before the end of the year. It
will provide music enthusiasts
with sound quality presently
beyond all but the most
expensive hi-fi systems.
It is a small 4) Inch disc
which stores up to a hour of
music on a single side In the
form of tiny microscopic pits.
The pits, lying along a helical
track some 24 miles long, are
coded as a digital signal.
The digital signals are buried
beneath the surface of the disc —
protected by a transparent
plastic layer, from dust, dirt and
scratches.
The signals are read by a
laser stylus which is focused an
the pits beneath the surface so
affect the sound quality.
Philips hopes to have three
different models of the compact
disc player available at. or
shortly, after the launch date.
Prices will start at about £350
which, initially, puts the system
out of the mass market
The player will link directly
into the conventional hi-fi
system. Because of the coding
system adopted on the disc, the
player can he programmed to
play the tracks in any order, to
display track titles, or move
across the disc at high speed,
making it far more sophisti-
cated than conventional record
players.
As the disc is so small.
Philips believes that it can be
used in portable equipment and
the company is putting great
emphasis on developing a small
version which can be used in
cars.
The company Is to limi t its
launch to four European coun-
tries because Polygram, the
world’s largest record combine,
will not be able to produce
sufficient discs to support a
larger scale introduction of the
players.
At about the same time as
Philips enters tbe UK, West
German, Dutch and French
markets. Sony will attack its
home ground in Japan sup-
ported by CBS-Sony with the
disc production.
Philips will not sell the
players in the U.S. before the
end of 1983 at the earliest It
has been hampered in that
market by the inability to find a
suitable partner
Mr Bert Gall, who is res-
ponsible for the compact disc
at the company's headquarters
in Eindhoven said that this was
not a major problem. He said
• that it meant that Philips could
concentrate on the very indi-
vidual European markets
before attacking the U.S.
So far about 30 audio equip-
ment manufacturers including
Grundig, Bang and Olusfen.
Akai, Toshiba, Hitachi and
Sharp have agreed to use the
standards for compact disc
which ensures that there will
be a world standard for the
system unlike the' problems en-
countered in video for both
discs and cassette.
Overall, the music industry is
cautiously optimistic about the
new system, as it hopes that the
compact disc will stimulate
records sales in a very
depressed market
Many record producers, how-
ever. are reluctant to invest in
the expensive disc making
plant before a .mass market is :
opened up for the players.
AT u v A French Government
: establishment on the outskirts
of Paris they are trying to pre-
vent helicopter winchmen from
getting nasty shocks, measure
electrostatically the tiny forces
produced by solar radiation on
spacecraft, and even generate,
their own kind of lightning;
It was all revealed in an
all too rare exposition of
French Government electronics
at l’Office d*Etudes et
des Researches Aerospatiales
(ONERA) at Chatillon sous
Bagneux.
ONERA is the rough equiva-
lent of Britain's Royal Aircraft
Establishment at Farnborough
and Bedford. Chatillon is one
of three groups of establish-
ments: a second, with a big
industrial wind tunnel. - is at
Mondane In the Alps, and the
third is at Toulouse where a
subsonic tunnel went into
service in 1977.
In 1981, ONERA, with 2,000
employees, deployed operating
funds of FFr540m and invested
funds of FFr 90m on plant and
equipment.
Electrostatics have taken on
a new significance in recent
years. As avionic equipment
uses more and more microcir-
cuits with smaller and smaller
operating voltages and currents.
, tite chances are increased of a
malfunction due to static dis-
charges and their related fields
or metal-conducted currents.
But there can he other, more
obvious effects. For example,
j aircraft normally discharge
themselves electrically on land-
ing (tbe tyres are conductive).
But a helicopter attempting, to ;
winch up survivors from the sea
may lose its charge through the
winchman and the survivors: it
is possible for them to be ren-
dered unconscious. ■
So at Chatillon they are
trying to develop a device that
wiH prevent charge build-op —
particularly prevalent in the-
rotor-induced spray conditions
—by passing a reverse “ space
current " from helicopter to sea
surface. '
More potentially dangerous,
however, is the effect bn flight
systems. Work at ONERA was
accelerated hy the fete of the
ELDO rocket some years ago
which, after eight years' work
and FFr 3b n, failed when an
electrostatic discharge shut
down the onboard control com-
puter during flight
Non-metallic
Many ordinary aircraft are
grounded even In 1982 during
electrical storms since their
radio beacon directional
receivers (VOR) % instrument
landing systems (ILS). and
radio compasses can become
disturbed and unreliable due to
static.
Electrostatic problems are
being exacerbated hy the use of
increasing amounts of composite
non-metallic material in air-
craft structures — in radomes
(radar aerial covers) for
example. Such materials do not
conduct charge away as readily
as aluminium alloy.
One of the ONERA develop-
ments is a new kind of coating
which Is electxomagneticaUy
transparent, allowing the radar
microwaves to. 'pass through,
but conductive enough to
prevent charge build-up. Its
efficiency is measured hy a
specially developed ‘ push-on
surface resistivity meter.
Other work is directed at
perfecting resistive devices at
static discharge points and
edges on the aircraft, prevent-
ing sparks between flaps or air- .
brakes and the wing surfaces.
The snag with this kind of
investigation is that standard
conditions are not easy to re-
produce. . . • •
So to put controlled quanti-
ties of charge on to surfaces, a
team at Chatillon has deve-
loped a “spray gun" for
charged particles. Humid air is
passed coaxially over a high
voltage electrode and through
a supersonic nozzle, where it
turns into a stream of charged
ice microparticles.
More fundamentally, the way
in which discharges take place
over surfaces is being looked at
A pneumaticaJly driven mobile
charging comb connected to a
high voltage source is passed
over the test surface.
A discharge is then triggered
over the test surface and the
rate of its progress Is measured
by means ef optical fibres
placed at intervals down the
discharge path. As the light of
the discharge passes it goes
down each fibre in succession.
At the same time the patterns
are photographed.
Perhaps the most remarkable
• ' SUPERSONIC
NOZZLE . \
HIGH VOLTAGE ELECTRODE .- \ .[Jr'
\ - - •< *' .
'sszmmmL
FLO W OF- . - . A -
i HUMID AIR ; ; I. ...
: <>.
CHARGING
CURRENT
The Chatillon spray gun
application of electrostatics at
ONERA is in design of accelero-
meter, for use in space, that
has a sensitivity of one ten
billionth of' one “g.” At such
levels, the forces due to sun-
light falling on skin of a space-
craft can be measured. .
The Instrument " consists
essentially of a heavy ball
which (in no-gravity space) is
floating freely and centrally in-
side an outer spherical shell.
Changes in radiation Intensity
on the outer shell will tend . to
make it move.
However, a feedback loop and
position sensor generate a volt-
age which, applied to electrodes
will generate an electrostatic
force; restoring the outer cas<?
to its concentric position. The
case “stays put" and - the
accelerating forces are mea-
sured by the applied voltage.
The Importance of the device
is that it can provide important
data about the perturbations of
spacecraft due’ to solar radia-
tion and residual gravitational
effects In space.
But electrostatics is- only a
smrl! part of the total effort at
ONERA. which is equipped, like
most similar establishments in
Europe and North America to
tackle the whole field of struc-
tures. engines, wind . tunnel
testing, missile systems -and
general physics.
It is, for example, something
of a specialist lab for vibration,
having examined bridges such
as thst at St Nazalre'. Cars, the
French high speed train, and
even the humble ski.
Brunei’s costly 1848 railway failure revived by Brazil
Air pressure to push the commuters on their way
‘ UNIVERSITY OP BIRMINGHAM
Postgraduate Soviet and East European Studies
Applications ore inviud by this Interdisciplinary Cantra (or ■ rauarch
studentship leading to a Master's degree or. In approved cases, to Uw
degree oi FiiD. Tito research topic is The As&acsment or Financial Risk in
Eastern Europe.
The studentship is to bo funded by the Social Science Research Cpurtefl
under its scheme far Collaborative Awards in the Social Sciences, Research
wW be carried out in collaboration with a loading UK firm which has a
highly successful record of exporting to Eastern Europe.
Candidates must have at least a good second-class honours degree in
Economics. A working knowledge of one or more East European languages
l preferably Russian or Polish) would be an advenuge, but intensive
language training Is available in Russian and Polish for beginners.
For further particulars and application forms pfeasa contact the Centre
Secretary aa soon as possible by letter or telephone, quoting re feren ce
CASS/PH/1 at ttw Centre lor Russian and East European Studies, University
of Birmingham. PO Boa 363, Birmingham BIB 2TT (021-472 1301, ext. 2124).
Latest date lor receipt of applications: Monday 12 July 1982.
THE CONCEPT of Isambard
Kingdom Brunei’s ” atmos-
pheric railway,” a costly failure
in southwest England in 1848,
has been revived in Brazil The
designer of the 201h century
version, Oskar Coester, how-
ever. had no knowledge c*
Brunei's experiment more than
130 years before.
Co ester’s, company has just
been given the go-ahead to
build a L2 hn single-track
line at the Administrative
Centre in Porta Alegre. If the
service, using 150 passenger
capacity cars pushed by. air
pressure, is a success, a 7 km
line will be built linking the
Administrative Centre with
Porto . Alegre's new. . S-Bahn
style commuter railway.
A second track would be
added raising line capacity to
12,000 passengers an hour.
Average speed of . the light-
weight cars (including stops)
will be 35 km/h. Coester claims
his railway can be built for one-
third Of the cost of a light raU
line.
Brunei's system used a dose-
fitting piston in - a cast iron
pipe laid between the rails.
Stationary steam engines at
intervals along the line- worked
large pumps to exhaust air from
the pipe. As air in the pipe in
front of the piston was pumped
out, the piston, connected by
an iron plate, through a silt is
the pipe to the raU vehicle, was
driven forward by atmospheric
pressure to propel the train. -.
Airtight seal
The system was applied on a
322 km section of railway track
between Exeter and Newton
Abbott but the project was
abandoned after- eight months
because of difficulties in main-
taining an airtight seal along
the slit in the pipe. The slit
was dosed by a leather flap
which had to be lubricated to
keep it supple.
Brunei’s failure was In nn
small mc-asvrc due to ti'». rr-ir
which gnawed the leather to
feed on the oils.
Coester’s system encloses a
much larger pipe with a rectan--
gular steel or plastic flap
to the vehicle frame. The flap
effectively blocks the 1.5m by
2m ^duot cross section and
absorbs energy from the air
flow In the duct.
It has a thrust proportional
to the differential air pressure
produced by a conventional
centrifugal design : ventilator
located in the station ahead of
■ the vehicle. Pressure and air-
flow control are achieved
through a throttle valve located
inside the ventilator Intake
. tube.
switching, problem—
'moving from. one track to an-
other— has been solved by us-
ing conventional switches on,
the track coupled to a door
valve device in the air duct
; which shuts off the unused
section.
Advanced technology has
solved many of the problems,
such as speed control, encoun-
tered by Brunei The Coester
car will operate in more
benign e-lmospheric conditions
than Brunei’s vehicles. The air
pressure difference . is much
lower than in the relatively
small diameter pipe used In
T.~r^Vs st m* 5’/ fi.Vr f'ilurc.
GE NERA TORS TOMOlua.:
WATER PUMPS up to b okHES
MANUFACTURED BV 1 '
ATALANTA
ENGINEERING LIMITED .
l i w re t h Tradtap Estate, Hamrerth tap, i
Clwtaay- Smy. England. . *
Chwt— y 88855 TMac SB1253B \ ^
Plastics I; f
Reducing -M
heat loss V i
A COATED plastic- she&* -i
claimed to cut heat loss frail *
windows by two-thirds, has wfc ?
the £10,000 first prize in
energy research' competition.
The sheet, developed
Loughborough University - fi
Technology, can be fitted in ne&if
windows or mounted on
ing window frames. . JK
Its coating, a metallic oxidefil
is transparent to visible IigWp
but reflects heat, reducing radial
Hon heat loss and retaining the
maximum amount of heat from
the sun.
Loughborough's main innova- -
tion was- in developing the ■
method of coating the sheets,
using a technique called “planar
magnetron sputtering.” This.,,
produces a durable surface
callable of protecting the pi as tic V/
from scratching as well as’ j
giving tbe necessary optical \
| qualities. j
The sheet if put into com*
merclal production, would cost
a6out £1 a sq metre from a i'
plant producing 10.00 sq metres
a day. It is claimed tha t a '
typical - installation would pay ^
for itself within a year.
Second prize went to the :i
University of Tubingen, West j.
Germany, for a process to con- -
vert sewage sludge into fuel oil. -
The project uses relatively
low temperatures— 250 B -350“ C * 1
to produce a low-sulphur oil I
with a calorific value similar to ■
natural crude oil.
France’s National Centre for 3
Scientific Research, at Orleans, ■■
won third prize with a highly
imaginative project to produce
hydrogen from water and sun-
light using a photocatalytic •
system.
The system uses day-like
minerals bearing opposite dec- 4
trlcal charges and earning
catalysts to cause charge separa-
tion and gas production.
- The system has so far only
been operating tor very short
periods, but the process— which -
fSSlJlw “ atur al photosyn-
toSible? 135 ah0wn itself 10
Peter Walters, BP chairman.
Pfkes, said that
although the world energy crisis
5“ fte competition •
was started In 1979, the need to
$7? T ®P new energy techndo-
? ,cs as urgent as ever.
Jlllv t
Financial Times Wednesday Jaly 7 1982
21
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THE ARTS
. IE-
-.l' -
U l ,;: •
wr,
« .»
Television
La sonnambula/Covent Garden
Michael Coveney
Ronald Crichton
Take a week off, they said.
Watch some 'television. • it
doesn’t matter what you «y,
Chris DttoMey will soon he
back to- bring a, whiff <rf pro-
fessionalism to the. catann. Be
won’t tiring back though.
will he? Wtprna Twin JJMUdoaa l -
At the outset, I will- say that
only raa of my tips to through
to the World Cup semifinals —
West Germany. I ' am dis-
appointed at tiie early exit of
the Soviet team, fhjiHed by the
success o£- the ■French »Tyt
moved to tearii-.tff -Joy at the
hard-won . managerial triumph
of Enso Beanot "The Italians
•should have, done much better
in both 1974 and 1978. Their
3 — 2 victory, over, Brazil on Mon-
day afternoon ".was .one of the-
tnriy great soccer matches rod
one of the- -oatetandingf tele-
vision occasions ofroe.Jear. _■
It has been a pAiiiditng few. -
week* for the sUem jgajortty
who know that tefeyistfei does
nothing so well aa c^ror sp^ffL
Wh y shoul d, the armchair- for^
be thrown on the defeiwve By-
tile moronic anti-spoil brigade?
Nothing from Sr Robin -Day,
“Play For Today" or eyen The
' World About' Us cah paftvide
anything as exciting, vivid- or
immediate as Patti- bitting six
successive fours off Bob Willis
in the Second Test' at Old.
Tr afford, BalHe-Jeztn ?Rtng beat-
ing Tracy Austin in 'die Wbn-
bledon quarter-flnals last Wed-
nesday, or ' -Patito- /Rossi - Over-
coming fhe-Bnxfliaitti with great
play and an already legendary
haMc*. - ' 1 : .--• -
In an th^ instaw^ cora-
mentaiy was apt Jim Laker,
alas, forgot ' to i mention that
Patti’s feat equalled the world
record for Tfeqt Match pr in
Ragland, * tint - then- hardened
cricket fans put np witb u. lot
from Jim laker. 'lie bonus nvas
fltet Tony Jj&vis hM -been
draftedin tocovefiOW Trafford
while ■ Peter Whi^erizyf”'
WestL .had .been. meaxdfnRy
despatcamd tfr Court ^ ^No. 1 and
tots ot adtarat Wii^fiedop. iy?
■ Pudding-heads who hive no
f eeIingfQX; 9 >ort begin itosound
like - s’- . tone-deaf ■ deputation
pfcke ting music on the- South
Bahk.-If you go to the Elizabeth
Ball, to* hear iuusic. If .
not. get much of a a bout this
time, of year, but ITV launched
a new, series of Playhouse' on
Saturday ^night with. The House-
tog (Yorkshire) by ' Irving
Wardle. Mr. Wardle, dammit
happens to be the drama critic
of The Times and, even more
dammit, has done an excellent
reunite job on a piece that the
.-little Open Space Theatre
premiered some eight or nine
years ago;
On that occasion, , a. 'callow
music student was taken to one
Sinatra Special on BBC 1 (I
- caught a glimpse 0 ? the maestro
shrugging his way with incom-
parable, musicianly tunelessness
through the -5o«sa classic “ The
(Sri from Tpanema ”) rod Dirk
Bogarde giving one of his finest
performances in a BBC 2 show-
ing of Fassbinder’s Despair. X
punched buttons for 90 minutes
and saw not a ball kicked,
bowled or served.
Things were getting des-
perate. The- whole notion of
TV -gloom was being carefully
■ “ Puddnjg heads wfio have no feeling for sport begin to sound like a
; tafifi deaf deputation jtejte&ig miiac on die South Bank. If you go
' Hafi, ^ espect to hear music. If you turn on your
expect fif iw&tdi\ sport” ,
you ttnu on- your television, ex-
pect to watt*, sport That’s what
it* ‘there for. This may sound-
like a minority view (people
like me with minority views
have high hopes of
Four) but it isn’t really. Every-,
one likes It! Even Sunday paper-
colmnnists vatcb it ail the time
and: then try to excase tixen^
selves by abusing the com-
-mentatbrs. What hypocrisy!
None of them could hold a
candle to even John Barrett
when it comes to describing the
technical skin of a cross court
passing -shot or the background
form of. individual players. *
Bang oh, this wasn’t the point
of the column at all..' 1 was
hoping to take a look at drama
on TV, seeing as I spend five
nights a week . in the live
theatre. The single play does
ride in the kitchen of a
hotel and told about sex by
Thelma Holt (currently running
file Round House) -in black
underwear. . Now, and much
more . . convincingly, John
(Stephen Garlick) was cangbt
in the pathetic cross-fire of two
mtikOeaged homosexuals, bril-
Jiantly played by Richard Pasco
and Geo ffr ey Palmer. It was a
small play, but it knew its limi-
tations. Ur. Wardle was indeed
a music student and one felt
he was paying an affectionate
tribute not only to an episode
of his own past, but also to the
playwright he most admires
(and was one of the .first to
acknowledge), Harold Pinter.
Not a word was. wasted; not a
. word too high-flown.
The Houseboy dashed not
with sport, hut with a Frank
re-defined, however, by the Bir-
mingham outpost of the BBC.
On BBC 1, Saturday Live died
a frantic death despite the good
offices of Gloria Hmmiford, a
rfwgtng amalgam of Katie Boyle
and Terry Wogan (her hair, his
nmke-np). tf« - ffnim ifa w i is
great on. Radio 2 and a little
anxious to please on the box.
It could be early days, though,
in an auspicious career. I just
hope she doesn’t end up count-
ing Eurovision Soog Contest
votes.
She was stuck here with ..an
awful' .brantub of hooray Nlte-
Iiferie, sycophantic pluggery
(mostly perpetrated by Simon
Bates sucking up to the cast of
Pirates of Penzance in London)
and last-ditch efforts to make
Pebble M31 look lived in. At
one point she introduced a
lunatic -who had hired the
Albert Han and a scratch
orchestra in order to perform
Schubert’s C -Minor for a bet
He was hoping to get into con-
ducting in a big way.” X sug-
gest the No; 24 bus route.
Unless the music critics think
differently.
Even worse, because more
calculated, ' was Pebble Hill’s
Six Fifty-live Special (BBC 2)
which threatens to cast a
nightly pall over the cocktail
hour until late August Sally
James (ex-Tiewas) and- David
Soul (ex-Hutch) are our un-
necessary hosts. After Monday’s
embarrassing fiasco, they
promised, as if pleased with
themselves, Molly Parkin and
the Earl of 'Lichfield for Tues-
day. Honestly, it makes you
glad to be. going out to file
theatre each night.
Apart from sport, the best
things all week were children’s
programmes, despite Professor
Stuart HalTs analysis of them
for the . Open University
(BBC 2) on Sunday morning.
BBC’s Playschool and Thames's
Rainbow lead the field, albeit in
violently contrasting stylos.
This contrast is less, of a prob-
lem for «*ri»n chi l dr en than it is
for Professor Hall.
The revival of Bellini's -Ln
sonnambula brings Lariana
Serra (Olympia in the Covent
Garden Tales of Hoffman) as
the sleep-walking Amina. A
bright, forward; securely-placed
voice, neither hard nor deeply
lyrical; excellent intimation.
Though there was not much
shading in the singing one was
grateful for the cleanness rod
clear brilliance. With “Ah! non
credea* in the last scene the
finer shades came too. The
formidable cabaletta to that
aria was slightly rushed, even
twittery, hut Hiss Serra
deserved her big success.
Amina’s perplexed swain
Elvino was sung once again by
Dennis O'Neill with tone less
well-focused than his partner's
but more musical, more
interesting phrasing and, in Ids
solo scene, a warmth of expres-
sion recalling his most likeable
Nemorino in L'elisir dhrmore.
A newcomer to Covent Garden
and to this country was the
Hungarian bass Laszlo Folgar,
a correct, dignified Count
Rodolfo, a tittle too shy perhaps
on Monday to give his singing
the lustre and presence the
music demands. Teresa Cahill
sang the jealous Lisa — attrac-
tively warm sound, unfortun-
ately with the words clinging
to the bad; of her throat.
I like most of Filippo San-
just’s romantic Swiss views,
executed as a kind of fantasia
on traditional methods of
scene-painting, but in his other
capacity as joint producer with
Richard Gregson Mr Sanjusfs
dispositions are inhibiting to
tiie chorus. The men wear their
William Tell hats with an air,
but they and their womenfolk
stand around to a degree which
casts a slur on the industrious
Swiss peasantry and throws a
heavy strain on some pages of
Bellini's score which cry out
for the kind of unobtrusive
movement used to the famous
£. .....
Luciana Sena
Visconti production. Maurits
Sillem conducted. His com-
petence was rewarded a!
curtain-call with a solitary,
loud and unjustified boo among
general applause.
Duck Hmiting/The Gate at the Latchmere
Rosalind Carne
Brazil v Italy had only one
serious rival: an ITV Monday
morning programme about the
Mbuti pygmies who inhabit file
Itnri forest in Zaire. An
American import, it was ' a
totally fascinating and absorb-
ing fit™ about now a small
group of small people vE live
for months on elephant flesh,
bravely hunted. This, like the
soccer, was real life. To love
theatre, you have to love life.
There is, sometimes, a connec-
tion. I fancy Italy.
All’s Well That Ends Well/Barbican Theatre
B. A. Young
“ It’s this unwontedly realistic
quality about /lU’s Well tint for
me sets it so high among
Shakespeare's comedies,^ . .1
wrote of a previous production
and this new production under
Trevor Nunn’r direction is more
realistic than ever. Mot believe-
able, of course; we aren’t to
think that in the first decade of
this century, which is the time
Lindy Hemmihg’s costumes sug-
gest, there: was . a war in .which
French soldiers Of fortune were
serving in the Florentine forces. .
But realistic in the.wax.,J$£.
characters think and ttelave,-
avoiding -their duty if ' it seeing^
unattr a ct i v e , giving way . to the/
lightest temptat io ns - once they
are away from home, just as if
they we in . Spain watching
a football match.
There is a slight snag about
such realism and is that the
bad riiaracters are so much
utore likeable thro the good'
ones. Harriet Walter's Helena
is an admirable performance,
but by God what a dull person
this Helena turns out to be. Tbe
Florentine Diana, who lures the ,
unfaithful Bertram .to her ’ bed
but substitutes, Helena in the
dark; -as. if she - were Mariana
/front .the nujated grange, ...is
twice as much tipi and Cheryl
thropbeti,^ vhas a splendid time
with her.
- The same applies to the men.
Not that anyone could call
Bertram a good man by any
stretch of the imaginations and
his ultimate pairing-off with
Helena , is about, as improbable
as Mariana's;, bat rinep. Shakes-
peare insisted that his hero and
his heroine did ultimately walk
off the stage together, that is to
say, that the play was a comedy,
we most assume that his last-act
repentance turned him’ from a
goat to a sheep- So . Philip
Franks plays him as a potential
sheep throughout pleasant
enough but not very entertain-
ing. • ' "" '• ” ’
• On the. other hand, PardO as
is a thoroughgoing wrong-un
and Stephen Moore has a mar-
vellous time with him, whether
he is a court braggart or a
down-and-out after his ragging
by the Florentines. In fact
there seems Kttte doubt that
Mr Nunn intends this to come
near the edge of farce. The
soldiers have a great time with
the imaginary language to
which they question Parolles;
whether they really say “Boskos
vauvado” and “Oscorbidulochos
votivoico” I can’t swear, hut
they say something equally un-
intelligible. .
There is highei>grade comedy
elsewhere, . in. ' file dignified
scoffs of Lafen/as Robert Eddi-
son plays him, rod in the inter-
esting Lavache of Geoffrey
Hutching, bent double like
Rigolett o and , like Rigoletto,
• pretty contemptuous ‘ of - the
upper classes.
. But where true dignity is
required, it is. amply provided.
Peggy Ashcroft as the Countess
of RosrilHon is perfect, noble,
maternal, affectionate by turn
and speaks with such clarity
that one longs for another
generation of actors of her
calibre. John Franklyn-
Robinson didn't seem to me to
be suffering very much from
bis fistula, even though it con-
fined him to a wheelchair ; but
once Helena had performed her
magic cure and he had become
erect again, even lively, be was
a true king, if only of France.
The dance he bad with Helena
to demonstrate his revival was
courtly; but the dance of the
Florentine soldiers later on
made me think of Woyzeck with
its hint of hidden menace. The
musiriazis that played for these
affairs made an appearance of
their own as the regimental
band after whatever campaign
it was that the Florentines had
been fighting.
The designs by John Gunter,
depending a good deal of sliding
panels, are never obsessive and
always appropriate. The whole
production, in fact, seems to me
admirable, strongly to be recom-
mended.
Aleksandr Vampilov died in
1972 and tills is the first time
one of his plays has been shown
in this country. I find it hard
to recommend as an evening’s
entertainment, but It is cer-
tainly an interesting theatrical
document
There is nothing very dissi-
dent -here; the strains of
existence under Communism
are molified by a crudely
humorous outlook. Nevertheless,
it does afford an intriguing
glimpse into the oppressive
stultification of modern urban
Russia, as well as an indication
of what is permissible on the
Soviet stage.
Chekhov, notably Ivanov, is
the obvious source of inspir-
ation. yet Duck Hunting is a
good example of the way in
which -the legacy of genius can
restrict as easily as it can
nurture. Zilov Is a bored cynical
engineer for whom file annual
Doric Hunt ha$ become a symbol
of escape from the mediocracy
of his work, his friends and his
marriage. His wife, Galina is
devoted and sympathetic, but
he Sods her tedious, preferring
the company of a series of
attractive mistresses. Having
endured his ill-treatment and
indifference for five years, she
finally deserts him for an old
school pal.
We meet our unlikeable hero
in his tiny, grey flat at the
beginning of the hunting season.
A prolonged flashback leads up
to his personal crisis (Chek-
hovian pastiche) and Introduces
a gallery of stock characters —
colleagues from the Central
Boreati of -Technical Inform-
ation. assorted girl friends, and
Ins hunting partner Dima. who.
unlike them, is free from the
.taint of hypocrisy.
Annie Hayes gives the only
genuinely affecting perform-
ance as Galina. Her heart-felt
interpretation encouraged me to
believe that a more careful
handling throughout might
rescue the play. John Abbott's
Zflov is a convincing per-
sonality but sufficiently un-
sympathetic to muddle the
ethics of the piece.
This theatre’s resident direc-
tor. Lou Stein, has allowed the
rest of the cast to rely on a
superficial and spibey comic
exaggeration, with the excep-
tion of Natalie Ogle who brings
a touching innocence to her
portrayal of the student Irena.
Poscale and Pip have created
a spartan design of painted
flats and the concrete view from
the bedroom window is as
horrifying as anything In the
text The translation by Almn
H. Law sounds somewhat stilted
though, in my ignorance of the
original, it will be easier to
judge on hearing Peter Tiegel's
version for the National
Theatre later this year.
Nepalese Dances/Bloomsbury Theatre
Clement Crisp
Henze’s Barcarola/Barbican
I find the group of Nepalese
dancers and musicians, who are
at the Bloomsbury Theatre for
the rest of thfe week, very jolly.
Their dances are in the main
short — an immediate bonus' for
the habitue of folk-dance
troupes; their manner is direct,
engaging; presentation is simple
to a point of austerity rod none
the worse for that; there, seems
not one over-blown, over-
decorated item. '
If fins does not Immediately
attract the viewer curious to
find out more about the varied
— and they are varied — dances
of Nepal, Jet me add that the
emotional climate of the evening
is buoyant, that the performers
seem naturally jovial rod that
there is that rare feeling of
authenticity about the proceed-
ings which nothing can replace.
' ’ My knowledge of Nepal is
limited to this evening's enter-
tainment, bat years of watching
trick ed-out, trumped-up en-
sembles from the four comers
of Ihe globe has taught me that
these dancers from the roof of
the world are entirely un-
affected in their delight In
d a ncing , drumming and playing
for their public who, test night,
included HRH The Prince of
Wales.
Movement is . in the main
lively; dances for men and
women tend to end on an accel-
erando, rod the flash of cos-
tumes, the bright eyes and
bright steps of the dancers, are
uncompromisingly charming.
Beautiful rod sprightly a
Maithali dance from the
southern borders of Nepal, the
roulades of the accompanying
flute matched by the vivid trip-
pings rod alert rhythms of its
interpreter. Miss Shanti. Great-
est fun the peacock dance— pea-
cocks, we were told, dance at
the sound of thunder in Nepal.
The evening, in sum, as un-
sophisticated in manner, though
complex in components; rod a
welcome breath of a fresher air
than we usually breathe In the
city.
David Murray
& xir*
f V ! s
Ltoatrd Ban
Peggy Ashcraft and Harriet Walker
• Hans . Werner Henze's
Barcarola arrived in London
yesterday, a little late (its
Zurich premtere was two years
ago), steered by the composer
himself with the T-ondon
Symphony as crew.
Barcarole proceeds for 20
minutes, like a gross expansion
of one of Liszt’s Lugubre
gondola pieces (themselves
inspired by the funeral of
Wagner in Venice). I have not
seen the score to explore it, but
it seems likely enough that
there is a Lisztian quotation
amid the sombre hubbub —
Henze has always been ready to
over-egg the pudding.
The work opens with
threatening drums and a shad-
Arts news in brief
dering bass semitone; there is
a brazen fanfare for Charon, to
he reiterated implacably later,
while keening lines in Henze’s
arioso vein begin to stretch out
The official barcarolle-theme
comes at last on solo viola, vei-y
gently.
The prevailing tone is violent
rod expressionist As the
material is developed, succes-
sive furious waves rise higher.
The last climax is shattering
rod it subsides to disclose a
vision of “ the. other bank,” the
homecomer’8 Ithaca— but here
the evident . parallel with
Strauss’s Death and Trans-
figuration fails, ior there is no
elevated optimism; only a frail,
chiming OStlnatO.
Krisztma Laid is indisposed
rod will be nnahle to appear as
planned in the role of Sophie in
the performances of Der Rosen-
kavalier at Glyndebourne from
July 14.
Her place will be taken by
Deborah Rees, who has already
sung tbe role at Glyndebourne
on July 1 rod 3.
*
Up to 53 of the world’s most
talented young violinists, -all
under tbe age of 20, will com-
pete for £15,400 prize money in
the new Yehudi Menuhin Inter-
national Violin Competition
sponsored by Orion Insurance
in April next year. The com-
petition will be staged in Folke-
stone.
The age groups— under IB
and 16 to 19 — -will be considered
by the judges, the first prize for
categories being £2.500 and
£3,500 respectively. The senior
winner will also be offered a
concert engagement with the
Royal Philharmonic Orchestra
conducted’ by Yehudi Menuhin
at the Royal Festival Hall.
■*
administered by Sadler’s Wells
Trust rod based at Sadler’s
Wells Theatre.
' National Westminster Bank
has announced a four-year
sponsorship amounting to
£400,000 for the New Sadler’s
Wells Opera. The company will
commence performances during
January 1983 rod will be
Mr Philip Wilkinson, deputy
group chief executive, National
Westminster Bank, commented:
“Our new support to Sadler's
Wells will enable them to
bring back to the London
musical scene something that
has been missing for a consider-
able time.’’
Mr Stephen Remington,
director of Sadler’s Wells
Theatre, said the sponsorship
represented “ an important mile-
stone in the history of the
Wells.”
THEATRES
ALMJIY.
9232-37
836 39£
3.0. OLIVE:
3*7*. CC 030
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A ~USSER "COOT PLAY OF THE YEAR
Tomer (July B>.
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8061 • Credit card booklea 930 9232.
GREENWICH. S CC 0WS8 T7M. Noel
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Instant credit card bookJin* 930 9232.
THE TAMING OP THE SHREW tontoht.
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ROYAL SHAKESPEARE ' «>MPANY In
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t»onfLe_ .. Corsair* tfaurt Divertimento.
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F.T. CROSSWORD
PUZZLE No. 4^16
ACROSS
1 Chants in key in prison
(4,4)
5 Disgust, but it’s not on
before the finfcai (6)
9 Influence past events, but
withdraw nought inside (8)
10 Gas deflated In front of us
( 6 )
12 Drink rod dance that boxers
use for training (54)
13 Praise, without nephew of
Abraham returning (5)
14 Nothing more than a lake
(4) .
16 A summons in tile course of
time (7)
19 Deltaic formation or it could
be from the mouth of man
(7>
21. A path to travel (4)
24 Scandinavian from north or
south-east (5)
25 Landing In Rugby? (54)
27 Drunken soil in bafiet
dancer’s garment (6)
28 Be opposed to in principle
and fafl to correspond (8)
29 Old senator going to- French
island (6)
30 The way to live cheaply and
without tears (44)
DOWN
1 Conflict or fight to the east
( 6 )
2 Head worker is nodding (6)
3 A heavy Wow string watery
snow (5)
4 Close one eye to make lace
to French resort (7)
5 lie incorrectly with protec-
tive cover (9)
7 Allowed to give a name to
( 8 )
8 Reveal a record, but fail to
win (8)
11 Reprimand friends turning
up (4)
15 Basic disembodied spirit (9)
17 Inflammation of a gland, and
what a study it is (8)
18 Spanish port without a
herb (8)
29 Betting machine to note (4)
21 Choice of roads taken, going
around to a usual procedure
(T>
22 Extreme fear of a type of
film (6)
23 Be an inseparable part of,
within this place ... (6)
26 . . . rod the most vital part
of a propeller (5)
Solution to Paade No. 4£15
i...
2 2
J* Uia»i'— i-i
j.iv -u/ < is®
HNANOAIilMES
BRACKEN HOUSE,'. CANNON STREET, LONDON EC4P4SY-
Telegrams; Ffnantimo, London PS4, Telex; 8954871
Telephone; 01-2488000 ' - f .
V
Wednesday July 7 1982
A way forward
in accounting
MEMBERS “of the “ English
Institute of Chattered
Accountants are mow fWii^ in
their voting forms to decade on
the Keymer end Tfasiam resolu-
. tion that the a a rr ent cost
aaoaunSHig standard SSAP 16
should be scrapped. With some
12,000 votes out of what is pro-
jected to be a 30.000 poll
already counted, the threat to
the accountancy establishment
emerges as being very real;
some 52} per cent of the votes
are anti-CCA, although the
baUtft period will mot until
July 27.
That CCA remains a highly
controversial subject (has already
been proved by our correspond-
ence columns. Now (these is the
likelihood of an unprecedently
high voting response in the
institute’s poll, proving that the
controversy extends right
through the profession. In itself,
this must be a severe disappoint-
ment to the leaders of the
profession who devised SSAP 16,
introduced two years ago. The
■hope at to at time was that the
planned three-year experimental
period — during which the
standard would not be changed
— would provide a breathing
space during which the argu-
ments could simmer down.
Th idea was that after three
years the standard would be
modified in line with ex-
perience and measures would be
taken to adopt CCA as the main
form of accounting— thus end-
ing the somewhat embarrassing
present system of dual report-
ing. Enthusiasts for CCA were
also intending that this method
would be extended beyond the .
listed company sector (phis a
few large private companies)
and would be more generally
adopted.
Modified
Whatever happens in the in-
stitute’s poll at the end of the
month, such hopes are looking
increasingly unrealistic. The
Keymer and Haslam resolution
is a mischievous one, which
owes more to a basic hostility
to accounting standards as such
rather than to any considered
approach to the problems posed
by Inflation. There is no ade-
quate excuse for reneging on
the implicit bargain struck
when SSAP 16 was launched.
But it would appear that the
leaders of the accountancy pro-
fession have failed to achieve a
broad consensus over CCA even
within their own ranks.
There can, however, be no
question of going back to
historical cost accounting alone.
Such a system in any case no
longer exists in Britain, where
so-called HC accounts are
routinely modified by the incor-
poration of asset' revalua
tions and depreciation over
unrealistically short asset lives
CCA has many advantages
over the HC method. It provides
a much more realistic balance
sheet, and is a potentially
valuable system for manage-
ment purposes in that its indica-
tions of profits fit in closely
with variations' of cash, flow,
and that its concept of profit is
based upon the maintenance of
physical capacity. But being a
subjective system' it" 'nteds
sensitive h andlin g, and it has
disadvantages as a system for
reporting profits to share-
holders who may be better
served by a method. of account-
ing which reflects .changes in
the level of shareholders
funds.
Opposition
For all the opposition by the
backwoodsmen, many companies
have found CCA to be of real
value. In the stock market CCA
earnings have usually been
found to provide a better guide
to tbe underlying performance
of companies than' the HC
equivalent — though the latter
earnings basis Is of course much
more flattering to companies.
Having come so far along tbe
CCA road, it would be better to
persevere, improving tbe system
In the light of experience.. But
if the opposition within, the
accountancy profession . and
industry makes this, politically
unrealistic, then the' time may
have come to take another- hard
look at the possibility of. reviv-
ing the current purchasing
power approach which was! the
profession’s ' .original' ' choice
back in the earfy. 1370s. ..
The - entrenched Whitehall
opposition to any ■ form of
general indexation which killed
off CPP by means of the San di-
lands report in. 1975 has now
mostly evaporated. . Granny
bonds and index-linked gilts
have been launched* and
indexed relief is now granted
on capital gains. Indeed, the
Inland Revenue has Appeared
to be much more sympathetic to
a general index approach thifb
to the kind of specific price
accounting. with. multiple
indices, embodied in SSAP 16.
In restrospect the Inland
Revenue's opposition to CCA
has been an important factor
in the debate. One of the attrac-
tions of CPP is that it- might
bring public reporting and tax
accounting closer together. The
Keymer and Haslam resolution
is an attempt to turn toe clock
back; the accountancy profes-
sion roust now find a’ way of
moving forward.
The Falklands
inquiry
THE TERMS of reference of the
Falklands inquiry which Mrs
Thatcher announced yesterday
are unexceptionable. It is
entirely reasonable that the
inquiry- should be able to take
account of “such factors In
previous years as are relevant,"
but even more to the point that
it should concentrate on the
period leading up to the
Argentine invasion in April.
These were the terms for which
Mr Michael Foot, the Leader
of the Opposition, was arguing
in the last few weeks.
Mistakes
There are. however, reserv-
ations. It would be churlish
to criticise the appointment of
Lord Franks as chairman on
grounds of age alone, though he
is <i- No doubt he would not
have accepted the task if he
bad not felt up to it. But he
is a slightly establishment
figure, perhaps a little bit too
much at home in conducting
official inquiries without bloody-
ing anyone's nose. His appoint-
ment does not show great
imagination.
The membership of the
inquiry team raises a more
general point. In so far as
mistakes were made in the
events that led up to the Falk-
lands crisis, they must largely
have been the mistakes of gov-
ernment. Appointing Privy
Counsellors to investigate them
smacks a shade of allowing the
accused to try their own case.
Again, we know from ex-
perience of select committees
that, whatever the virtues of
cross-party cooperation, there
are two potential defects. One
is that the politicians sometimes
divide on party lines. The
other rnthta they tend to agree
in bland terms and produce a
cover-up for the system. Lord
S carman's inquiry intathe Brlx-
ton riots last year was an out-
standing example of how this
kind of political dilemma can
be avoided. No-one doubted his
independence.
The House of Commons has
the opportunity to debate these
matters tomorrow and should
use it lo the full. Yet, the
technicalities apart, there are
other questions which make
the holding of the inquiry im-
perative.
For a start, there Is the-buri
ness of how toe signals leading
up to toe Argentine invasion
were so badly misread, whether
by the British 'Embassy in
Buenos Aires, the Foreign
Office in London or both. The
inescapable fact is that the
British Government machine
was caught napping and a
bloody war ensued. General
Galtieri and Sr Nicanor Costa
Mendez, his Foreign Minister,
always said that they were sur-
prised bv the scale of toe British
response; so were some people
at home. But it is just posable,
as Mr James Callaghan has
suggested, that British diplo-
macy had Jed them to believe
that they could invade with
impunity.
The wider questions, how-
ever. concern the relations
between officials and politi-
cians and between politicians
and the public. On the one
hand, under successive govern-
ments the Foreign Office had
been seeking a negotiated solu-
tion precisely because it fore-
saw that it would be difficult to
defend tbe Falklands from
attack and was aware of Argen-
tine ambitions. On toe other
hand, every time the Idea of a
negotiated solution was put to
Parliament it was shouted
down. The public, or at least a
substantial lobby, supported
Parliament
Resources
The result was that govern-
ments tended to duck a poten-
tially explosive issue. There is
something seriously wrong
when the Foreign Office can
identify a problem, the Ministry
of Defence knows that a terri-
tory cannot be easily defended
and senior ministers run away.
Parliament and public were
living in a dream world, yet
officials were impotent to shake
them out of it. The inquiry
will be of value if it leads to
greater public debate on* foreign
policy and on toe necessity' of
matching defence resources to
defence commitments.
U.S. VENTURE CAPITAL
The Silicon Valiev
By Guy de Jonquieres
“P
EOPLE often ask me
whether I ever thought
of starting this busi-
ness In Britain." says John
Ellenby. “ The first time I heard
that question. I simply stared
back in blank amazement. I’m
not sure that I could do this
anywhere outside * Silicon
Valley.”
Mr Ellenby, who moved to
the U.S. from Britain in 1974, is
president of Grid Systems, a
two-year old Californian com-
pany which has made quite a
splash with its first product, a
portable computer which sets
new performance standards for
its size. It is extremely power-
ful and versatile, yet compact
enough to slip into a brief case-
Cronically, the computer's
most striking feature, its slim-
line exterior, is toe work of a
London design team, Moggridge
Associates. But in most other
respects. Grid Systems’ brief
history is a textbook example
.of the new wave of high-
technology companies which are
springing up all over Silicon
Valley.
Mr Ellenby started out with
$50,000 of his own money
after leaving Xerox’s research
and . development centre in
nearby Palo Alta, where be had
been working on advanced
office automation • systems.
Seven months later, he raised
another $170,000 from friends
.and business contacts.
Since then, he has secured
a further $12m of venture
capital backing and assembled
a management team. Grid
Systems’ offices in Mountain
View are so new that they don’t
even bave a name plate on the
door. But several of the senior
executives are seasoned entre-
preneurs who have already
helped found successful elec-
tronics companies in toe area.
: The U.S. has enjoyed high-
technology “ start-up " booms
before, notably in toe late
1960s. But none has equalled
the current surge of activity,
which began about three years
ago and is at its most
visible in Northern California.
Hundreds of new companies
have sprung up there to seek
their fortunes in personal
computers, telecommunications
equipment. office products,
computer software and related
markets.
For anyone who has.a name
in the industry, a good market-
able. idea and is technically
competent, raising toe money
to start a "business is only a
phone call away,” according to
Ken Mackenzie, an analyst with
Dataquest, a Cupertino, Cali-
fornia. market research firm
which specialises in toe
electronics Industry..
Two forces have converged
to prodace this vigorous
corporate birthrate. One is the
availability of inexpensive
mass-produced microchips,
which can be assembled into
equipment ' and . systems with
relative ease. The second is a
big increase In tbe supply of
venture capital, which provides
the launching pad for most new
companies.
The challenge of building,
a microcomputer these days is
about as great as crossing a
busy downtown street," 'says
Denny van Ness, a partner in
Kamb rectal and Quist, a San
Francisco investment banking
and venture capital company.
“ The key to success lies in toe
product appiication and
marketing."
The Silicon Valley entre-
preneur has another advantage.
He has access on his doorstep
not only to much of toe most
innovative technology in the
industry, but also to a wide
variety of companies which are
ready to make his products for
him .
“An entrepreneur need not
own a penny's worth of produc-
tion equipment," according to
Jim Riley, a founder of Data-
quest. “ He can have his com-
ponents tested in one place,
mounted on printed circuits in
another and shipped down toe
street to be wired together and
put in a box.”
Tbe application of new tech-
nology is also opening toe manu-
facture of microchips to new
competitors. During most of the
1970s, the heavy investment
needed to keep abreast of the
latest advances in semiconduc-
tor production equipment kept
new entrants out of the business
of making “ standard " chips,
which are turned out by toe
million to an identical pattern.
Bat in the past two years
more than a dozen companies
have been formed to make
“custom” and “semi-custom”
components. These are inte-
grated drafts which are
specially tailored to meet toe
specifications of individual
customers and can be made
profitably in volumes of only
a few thousand.
The business— which could
rival- “ standard *’ chip produc-
tion in size, by toe end of tods
century— has been revdu-
.tipmsed by toe use of com-
puter-aided design (CAD)
equipment to W out toe
thousands of microscopic cir-
cuits on a silicon chip.
WHf Corrigan, chairman of
LSI Logic, a semi-custom chip
manufacturer set up 18 months
ago, says that his company
charges about $100,000 and
takes about six months to make
a fairly complex chip. A
“standard” part -would need
perhaps two years to design
and an investment of $lm or
more. Within a few years, he
predicts, LSI Logic wifl be
putting most of toe atacuftts for
a large computer on a single
chip.
The surge of venture capital
which, has financed toe start-
The returns on successful
ventures can be very
good: an animal
compound return of
30 per cent is regarded
as par, and it can be as
high as 80 per cent
that almost two-thirds of toe
money went into technology-
related ventures, and that 25-30
per cent was invested in Silicon
Valley.
The first venture capital deals
were made in the 1950s by
wealthy individuals in search of
high-risk Investment opportuni-
ties outside the quoted securi-
ties markets. “In those days,
it was an art form practised
by a few gurus,” Mr van Ness
recalls. Today, there are more
than 200 venture capital firms
in toe U.S„ and they pride
themselves on having brought
a degree of professionalism to
the business.
Though a few still act exclu-
USSbn
1-5
VENTURE
CAPITAL
DISBURSEMENTS
IN THE U.S.
I-O-
0-5-
'81 «t
souncETOSMTune capital jouniM.
up company boom can be
traced directly back to .1978,
when Congress reduced toe UJ5.
capital gains tax rate from 60
per cent to 20 per cent
The following year tbe
amount of funds Invested
almost doubled to $lbn from
$5 50m, according to Stanley
Pratt, publisher of the Venture
Capital JournaL It has con-
tinued to rise, reaching $i.4bn
last year. Mr Pratt estimates
Graham Lever
sively for rich families (the
Rockefellers have their own
firm, Venrock), financial Insti-
tutions such as banks, insurance
companies, pension funds and
university endowment funds
are the source of most of toe
money these days. Some large
industrial companies, including
Exxon, - Xerox and General
Electric, have also established
their own venture capital off-
shoots.
According to Franklin John-
son, president of toe Western
Association of Venture Capi-
talists. institutions typically set
aside up to 5 per cent of their
total investment portfolios for
venture capital. They contract
with a firm to manage it, usually
on a 10-year basis.
Venture capitalists are drawn
from a variety of backgrounds
— business management, the
law, engineering, even journa-
lism, though surprisingly few
come from banking. Mr Johnson
estimates that about three-
quarters of his association's
members have engineering
degrees — “ That’s the main-
stream education for toe
regular guy out here ”■ — and
some have first-hand experience
of running a business.
But such attributes play a
secondary role in evaluating a
start-up proposal, most venture
capitalists agree. “The techno-
logy is the easiest part of ft ”
according to Tommy Davis Jr
of the Mayfield Fund, a pioneer
of venture capitalism. “ By far
the most important part is
assessing the quality of toe
people in- the*. team. We go to
tremendous lengths to deter-
mine toe business ability of
each of them.
“When we’re satisfied, we
assess the market. We usually
try to avoid backing products
which are absolutely new
because it's hard to guess toe
demand for them. But if other
people are already selling about
$50m into the same market and
it’s growing, it’s probably a
good investment opportunity.”
Venture capitalists depend
for much of their information
on a sophisticated bush tele-
graph. News travels fast in
Silicon Valley, and so do people.
It is not unusual for some
employees to change companies
two or three times a -year, and
most start-up ventures arc
founded by men who decide to
split away from established
firms. Some successful entre-
preneurs have set up ns many
as three companies in succes-
sion, leaving each one after .it
has become a going concern.-
The must profitable invest,
ments are made at the startup
stage, and that means taking
quick decisions. Most venture
capitalists decide on a proposal
less than three months, after
receiving it- It is. rare for-a
single venture capital firm to
provide all the finance for a
new company — most like the
keep their exposure to below
$lm a time — and the investment
is usually syndicated between
several participants. r
. After that. vcnLure capitalists
adopt a Dutch uncle role,
supplying advice and contacts
needed to shepherd the new
company through adolescence
and providing second and thud
rounds of equity finance. Mott
aim to realise their profits with-
in about five years, when the
company is floated on the U.S.
Over-The-Counter market or js
taken over by another firm. .
The returns on successful
ventures can be very good
indeed: an annual compound
return of 30 per cent is regarded
as par, and in a few exceptional
cases it can be as high as 70-80
per cent. Venture capitalists
are less keen to talk about their
failures, though they admit that
toe casualty rate among start-
ups can be high.
“ But if you don’t have some
failures, you’re not trying bard
enough,” says Mr van Ness.
“You could lose half your in-
vestments and still make money,
provided you've picked the
other half right”
But with so much money still
seeking a home, will there be
enough good investments to go
round? Venture capitalists say
that competition for shares of
the best start-up deals has grown
much fiercer, and the prices
being paid have risen sharply.
Some fear that too many com-
panies have already been set up
to exploit markets which are
still embryonic, and that a
shakeout will occur among the
later and weaker entrants in a
couple of years. Mr Corrigan
forecasts that several of his com-
petitors in semi-custom chips
may not stay toe course.
During the late 1960s.
venture capital activity ground
abruptly to a halt after a wave
of collapse among WaH Street
glamour stocks which resulted
in spectacular losses for
investors. Venture capitalists
say that toe business is better
organised today, that invest-
ments are made more selectively
and that portfolios are more
diversified. Mr Pratt also
believes that the pattern of
investment is shifting, with
more money going into lower-
risk second- and third-round
financing, and less into start-ups.
Tommy Davis, who has been
in toe business since the begin-
ning, keeps a cartoon in his
office, clipped from the New
Yorker magazine. It shows two
Wall Street brokers talking in a
bar.- One is saying: “And ven-
ture capital — remember venture
capital ? ” “It keeps me from
getting a big head,” says Mr
Davis.
Men & Matters
Political
football
Could - Italy’s remarkable
victory over Brazil in ' the
World Cup stave off a. political
crisis ' which some com-
mentators consider all but
inevitable? This was the
question being asked in Rome
yesterday, the morning after
the explosion of jubilation in
every Italian city and village
which greeted the national
team’s surprise success.
By no means toe most
restrained reveller was the
Prime Minister ' himself, the
colossal an.i rotund figure of
Giovanni Spadolini, who, soon
after the end of the- match,
swept out of his official
residence in Rome, the Palazzo
Ctaigi. to join the crowds. To
the consternation of his body-
guard he waded through the
cheering throng to the Via del
Corso, the normally lethal main
street of central Rome, shout-
ing " Viva ITtalia,” and
embracing children with one
hand while waving toe green
white and red Italian flag with
the other.
Most unlike the usual
behaviour of Italian Prime
Ministers. They ore often loth
to tear themselves away from
the smoke-filled roots where
compromises are made and
coalitions broken, and rarely
enjoy much rapport with the
public.
But Spadolini is different: he
so obviously enjoys the job of
Prime Minister, gladly accepts
the role of national figure — end
has found that Italians, who
generally hold their political'
leaders in low regard,
reciprocate.
When -Italy beat Argentina
last week he appeared, like, a
Royal, on toe balcony of his
palace and last weekend paid an
evidently effective visit to
Barcelona— en route for Madrid
— to wish the national team
luck.
It would be unfair to impute
any motive other chan joy for
the spontaneous action on
Monday night of this 57-year-old
bachelor, tbe grst nonl EN
■ bachelor, the first non-Christian
Democrat Prime Minister since
1946. But it cannot have
escaped his notice that it wall
now be that much more difficult
for his fractious colleagues in
the coalition to bring down his
Government when it faces a
scheduled reckoning later this
week on the more mundane
issue of Government policy
towards the Seals Mobile or
wage indexation.
If the warring Christian
Democrats and Socialists decide
to retreat from the brink
(which they may well do), it
could just be that reluctance to
bring down an obviously popu-
lar Prime Minister, currently
presonifying a surge of pat-
riotism, has played its part
But that may be too much to
expect from the sunless corri-
dors of political power.
Hats off
There are at least two ways of
campaigning for the job of next
leader of toe Labour Party.
There is the Tony Benn method
of ardently espousing every left
wing cause. And there is the
Roy Hatters! ey route, demon-
strated at a Press conference in
Strasbourg yesterday.
After a meeting with Labour
members of the European
Parliament, Hattereiey gave his
opinion that one of tbe objects
of Labour’s alternative eco-
nomic strategy— reducing un-
employment— would be “de-
feated u by British withdrawal
from the BEG.
The party’s national executive
iad not done enough work on
toe possible consequences of
withdrawal on inward invest-
ment and job losses, he said.
The party also lacked any dear
sense of the implications for
agricultural spending.
This public credo caused
pursed lips among toe anti-
marketeers who flanked him.
Barbara Castle's eyes flashed.
Janey Buchan grimaced.
Was this the birth of another
historic political crusade? Why,
no. “ I am not,” said the shadow
spokesman for home affairs,
“going to build a great cam-
paign against established party
policy.” Tbe party had to be
kept in one piece. I am
extremely interested in Europe
but I am more interested in toe
Labour Party.” -
Did he have any other
interests such as serving in a
Labour Government committed
to EEC withdraw!? “Let’s get
elected first and sec what hap-
pens afterwards." replied this
trusty keeper of ever-open
options.
Cross current
Accountant David Keymer has
a surprising problem with
acronyms. Yesterday he and
his Sussex practice partner
Martin Haslazn summoned a
press conference to air their
views on inflation accounting.
Keymer had to be told halfway
through what MCP stands for.
(Words applied to someone
who, like him, invites. a female
reporter to step forward as toe
only available “ mother ” to
pour out the coffee.)
But CCA, of course, are the
initials which really upset him
and his partner— acronym of
the dreaded current cost
accounting which has been
imposed on most publicly
quoted companies by the
powers that be in toe accoun-
tancy protection.
Keymer and Haslam are
forging ahead with their -cam-
paign to have CCA rejected in.
toe July 29 poll of all mentoers
of the Institute of. Chartered
Accountants. They are person-
ally footing the bill for an
advertising campaign complete
with suitable graphics (CCA’s
mixed with BAA's, that is, with
a lot of sheep standing about
the place).
Both men see CCA as a
product of the kind of establish-
ment view which bears little or
no relation to the real facts of
life — “jutt like the establish-
ment's view of the EEC or of
prices and incomes policies in
the past," says Haslam.
On toe wall above them, a
portrait seemed to shift slightly
on its hook but Keymerf came
to the rescue. “We are not
rebels. We are not Scar gills of
this world. It really is just.
CCA weTe against.”
we're, against ”
Front wheels
Avis may try harder, but it is
losing the wot in Lebanon. On
a trip from the Israeli border
to Beirut yesterday five Avis
cars were spotted damaged and
abandoned by the side of the
road, while only three Hertz
cars had suffered a similar fate.
Tbe number of hire, cars lost
in the war in Lebanon has been
growing, and now toe car hire
companies have demanded that
journalists. renting their cars in
Tel Aviv must sign a special
form accepting liability for any
damage to the cars which is
incurred outride Israel or the
occupied West Bank and Gaza
Strip.
Pity toe American television
network whose cameraman lost
three- cars in Lebanon in the
early days of the war. . One was
hit by Palestinian guerrilla fire,
another was sideswiped by an
Israeli tank, and the third
simply fell down the .ride of a
hill. The driver survived to
try to- find another car lure com-
pany willing to provide him
with a new car.
In Australia, people know us simply as
the National. And know us extremely well:
we r ve been a major force in Australian
banking for well over a century, with 800
branches throughout this vast country.
But international would be a more apt *
description of our standing. We're in the
business of banking on a worldwide scale so
you'llfindour presence spreads far and wide:
we nave offices in London, New York
7"%°- Singapore, Hong' Kong
and Jakarta. And in Papua New Guinea our
subsidiary, the Bank of South Pacific, feat
your service. -
On Australian matters in particular, we're
•the bank. to consult. We welcome enquiries
on Australian business, trade, investment and
immigration.
From wherever in the world you may be.
Waggish
After buying some shirts in a
West End shop, toe assistant
showed a. colleague a trya. of
silk ties with red and purple
dogs’- beadson a pink back-
ground. “ No, thank you," my
colleague said, “ they’re much
too fierce for me.”’
. “You must be joking."' the.
assistant retorted. - “ They’re,
spaniels.”
Observer
The National Bank
of Australasia Limited
. thief London office: MTokenhouse V aR j, London 6C2R 7aj
‘ M . . Tef: 01-606 8070 " fcC2R 7AJ
Head office: National Bank House,- son R~ c ». . . >oj mip
A
'u jut; i
23
. Financial Times Wednesday July’ 7 1982
*■ :
HUNGARY’S ' ECONOMY
An East-West ti
By David Buchan, East Europe. Correspondent
‘‘WE ARE like a swimmer
doing breaststroke with one
“ d butterfly with the
? seen3S ainost impos-
sroie. but somehow we - are
Keeping afloat" This is how
Re ®° Nyers, founding
father of Hungary's economic
reforms, describes his country’s
dilemma in trying to tie itself
closer in with the free market
west, while still having to do
business with its fellow Com-
biiwist partners In the Comecon
^system.
But Hungary's leaders fear
that a coordinated Western
trade and credit embargo on
the East, as foreshadowed at
“the recent Versailles summit,
could conceivably sink the
'system they have wrought in
Hungary, on and off, for the
past 14 years.
The risk is -not so much that
without any new loans from the
West, Hungary will be unable
to pay back old debts. To be
"Sure, Hungary has the highest
-debt ratio in Eastern Europe.
But it also has the most buoyant
economy in the region. With
loans Already from West Euro-
pean central banks this spring,
with negotiations in train for
a commercial loan from
Western banks, and the pros-
pect of borrowing later this
year or nest year: from the
International Monetary Fund,
which Hungary joined in May,
the country stands a good
chance of weathering its pre-
sent credit crunch. ,
Hungarians take comfort
from the wording of the
Versailles statement calling for
a “prudent" but “diversified"
Western approach on lending
to the East suggesting to them
that Hungary might be made
an exception. '
President Mitterrand, for one,
» has said he. will not enlist
.in any U.S. campaign to wage
economic warfare against . the
East, and Hungarians will be
delighted to hear- the French
leader repeat that, when he
goes to Budapest today. .
The broader danger is that; if
cold shouldered by the West, a
majority of the' Eastern com-
munist states might turn further
inward to try to take Hungary
back into the Comecon stockade
with them. Mr Nyers, a central
committee member, suggests
that Hungary might then come
under Comecon political pres-
sure to refuse western . credit
offers, though other officials say
Hungary would not bend to this.
COMECON'S DIREbtlON OF TRADE
vnporfc&i
5 4 Exports Combined)
o —
1
i
.\v.
v-:
k':<
V<s
i
I
1
1
1
|
m
n
s
M
ha
1
IP
fPobnd
Romania
rUSSRl
11
I
k*',
i
$
II
1015 '80 *75 330 *75 ’BO *7S - W> *75 ’SO 75 SO 75 *80
faba-C0M9S0N OtfterNon-MarRet i~~ic£CD HldCs
HUNGARIAN NET HARD
CURRENCY DEBT
OSSbnl
-10
—8
-6
-2
1970- ’75 ’81 ’85
Forecast 8-9 1
ISottwIYflurton E conometrics
At; , last month's eastern
“s ummi t"" meeting of Comecon
prime ministers in Budapest;
Mr Nikolai Tikhonov of the
Soviet Union noted .with
apparent satisfaction that last,
year the • proportion of trade
done .by Comecon members
with each other had risen, to
55 .per cent of their total
commerce; and that this ratio
might increase further.
Hungarians .inwardly groaned.
They find growing fault with
Comecon because it jars w&h
their own system, now orient-
ated on world prices, bard
currency wirning exports,
decentralisation from ministries
to incttvidufil firms, and private
enterprise, if not ownership. .
.For a Comecon conclave, the
Budapest meeting was surpris-
ingly acrimonious. The Czech
and Romanian premiers sharply
criticised aspects of Comecon.
But it was the Hungarians who
had the broadest philosophic
critique. The bones which
Hungary picks with Comecon
are:
• -Bilateralism. The essence of
Comecon trading is for mem-
bers to sign long term bilateral
trade agreements between each
other, and yearly accords set-
ting precise export and import
amounts. The . Hungarian com-
plaint is that, for ail the use
off the “ transferable rouble ”
as a unit of account, there is
no multilateral means of settle-
ment Trade surpluses piled up
with -one Comecon partner
cannot be switched to buy
goods from another.
The Hungarians have done
two things to mitigate this.
First they are ensuring their
exports to each - Comecon
partner does not outrun their
imports, keeping surpluses to a
minimum. Second, they are
demanding dollars where pos-
sible. Thus, they ran a $800m
surplus on hard currency trade
with Comecon last year, a very
useful offset to their fSOOxn
deficit with the West.
• Terms of trade. Ever since
1976 Hungary has run a deficit
with the Soviet Union, because
in common with most of East
Europe the prices of the
machinery and industrial goods
which it ships to the Soviet
Union have been rising much
more slowly than the prices of
the Soviet energy and raw
materials it imports.
There is some debate in
Hungary and elsewhere of
tinkering with the so-called
Bucharest formula by which
most Comecon prices follow a
five year moving average of
world prices, possibly shorten-
ing it to an average of the past
three years or even one year.
That would speed up adjust-
ment to the world market, but
also make Comecon fully prone
to world commodity fluctua-
tions, which almost no one in
the communist bloc wants.
• Lack of specialisation. The
smallest country in the eastern
bloc, Hungary has had no
choke ■ but to - specialise,
dropping, for instance, any
pretension to build cars, but
developing a nice line in Ikarus
buses which it has sold world
wide. But Budapest complains
that other countries, most
notably East Germany, insist
on producing a full range of
finished industrial goods, and
foisting them .on Comecon
partners.
At the Budapest meeting
Comecon reached agreement on
which of Sts members were -to
specialise _!n the introduction
of -.micro-processors and
industrial robots (Hungary got
the prime role in the medical
sector. East Germany the
printing sector and so on). This
was a step forward in an
important field. Hungarian
officials would dearly love to
see a division of labour in
semi-finished products and
components. Bu! Comecon has
no multinational companies to
■organise this, and the country
may soon find it easier to get
specialisation -work from
Western companies. Unusually
for a. Comecon country,
Hungary has legislation allow-
ing joint ventures, of which a
few Western companies, such
as Siemens, have taken
advantage.
• Centralisation. More than 100
Hungarian companies now have
the. theoretical right to decide
what they want to export and
import (although they may not
always be able to exercise it
because of National Bank
controls on investment credit
and foreign exchange).
But this managerial freedom
— which contrasts with mini-
’ sterial decision-making in other
Eastern countries — is often
frustrated because Comecon
trading really does not allow for
such flexibility. To the irritation
of the reformers in Budapest.
Hungarian ministries still get
drawn into export/import deci-
sions.
-If the West were, inadver-
tently or not. to push Hungary
further back into the Eastern
trading camp, then the govern-
ment of Mr Janos Kadar would
have to try to straighten, out
these anomalies with Comecon.
This might mean sacrificing
som e of its reforms in foreign
trade and at home, where over
the past 12 months the Govern-
ment has tried to give private
enterprise' more play. The idea
is not to increase outright
private ownership in commerce
and industry, which will prob-
ably stay around 2-3 per cent,
comparable to the 1.4 per cent
of Hungarian agriculutral land
which private fanners own out-
right.
Rather, the aim is to emulate,
in the cities, the successful
recipe in ' the countryside co-
operatives whereby the state
retains overall control while
allowing full scope to the ata-
vistic instincts of Hungarians
for private work on the side.
Mr Kadar has carried bis 13-
man politburo on such reforms.
But some critics of the reforms
remain in the wider, 128-
member central committee and
elsewhere. They include, some
state company managers who
dislike the idea of private com-
petition, some trade unionist*
who fear unemployment will
result, a few unreconstructed
Stalinists and a number of what
might be called conscientious
socialists. The latter group
chiefly dislike growing wage
differentials, resulting from the
fact that around 75 per cent of
the workforce are drawing
vastly differing extra pay from
jobs in the “second economy,”
or private sector.
“ We should resolutely reject
the appealing notion and easy-
going practice of egalitarian-
ism." Mr Kadar, sounding
almost like a Reaganite, told
his 1980 party congress. "Social
justice requires the creation of
bigger differences than the
existing ones." Those were
unusual and bold words from a
communist leader, which Mr
Kadar might feel compelled to
eat if the West gave him no
support for his incentive-based
economic, reforms and if he
were forced back into toeing
the Comecon line fully.
Britain’s miners
Mr Scargill’s new
model union
By John Lloyd, Labour Editor
MR ARTHUR SCARGILL, presi-
dent of the National Union of
Mineworkers has set himself
and his colleagues in the NUM
leadership the most difficult
task in contemporary British
industrial relations. To achieve
it, be must reshape his union
into a battering ram r and that
extraordinary process is under-
way in Inverness this week.
On Monday, in a theatre on
the banks of the River Ness
he told bis annual conference
that miners should be instru-
mental in forcing massive in-
vestment in new pits while
retaining old ones and securing
high wage rises; in breaking
the employment legislation and
with it the Government ; in
leading the working class in
struggle — especially the
struggle of steelworkers and
rail workers who, like the
miners, were under attack; in
ensuring that the Labour Party
followed a true Socialist path
and did not expel its Left fac-
tions while doing so.
This programme, ambitious
at the best of times appears
all but utopian in face of a
self-confident Tory government
and a trade union movement
which has barely won a battle
in the last three years.
The reshaping of the union
for this Herculean effort is part
structural, part political, part
psychological.
The first decision taken by
the delegates was to empower
the Executive to “bring about
amalgamation of existing con-
stituent associations consistent
with modern and efficient
structure and organisation in
the coal fields." This move will
be a far reaching one: it is
designed to bring the old, local
associations — like the Durham
and the Northumberland Mech-
anics, the Scottish enginesnen
together with the white collar
section, COSA and the power
group — into full merger with
the NUM areas.
But there is more to it than
that These groups still have
considerable power: some have
representation on the Execu-
tive, and all have sufficient
autonomy to take their own
road at critical moments, as
when strikes or other indus-
trial action is threatened. Their
Incorporation will tip the
balance of power towards the
Left-led areas, which already
make up a majority of the
membership.
Mr Scargill says he sees this
as a simple matter of efficiency:
and indeed the motion came
from the Durham area as an
attempted antidote to the bad
relations between the various
groups in the North East, not
as a deep laid political scheme.
But Mr Trevor Bell, general
secretary of COSA — and the
only leader the demoralised
Right-wiag have — sees it as
the start of a year of more of
bitterness and law suits as the
independent bodies fight
against what they see as a
tendency to centralise power.
Threats of industrial
action are common-
place, so much so that
their currency could
become devalued
Industrially and politically —
the two arc inextricably linked
in the modern NUM — -the pro-
file of the union has been
sharply raised since Mr Scar-
gill’s accession to power in
April. Threats of industrial
action ■ are commonplace, so
much so that their currency
could become devalued. Reso-
lutions this week on wages,
protection of earnings and
early retirement have all been
accompanied by the threat of
industrial action if neeotiations
are deemed unsuccessful.
“The Government and the
Coal Board are going to say to
the leadership — 'you are going
to be tested,'" warned Mr
Collins yesterday. Earlier Mr
Scargill had identified Mrs
Thatcher as the only object of
his witch-hunt. The old reluc-
tance of Mr Joe — now Lord —
Gormley to have his union used
as a political weapon (though it
was) has been replaced by an
eagerness for battle.
The new president would
cany this momentum into the
Labour Party as well. He has
opposed the proscription of the
Militant Tendency and called far
the rigorous pursuit of a root
and branch socialist policy. He
will have enough on his plate
in his union in the coming
months: what time and energy
he can spare could be applied
to fu EStfring the cause of the
Left in the inner-party struggle
which seems cert? in to con-
tinue.
The psychological aspect Is as
important as the previous two.
The decision to move the union’s
headquarters into a mining area
—Sheffield is a favoured venue
-—was explicitly justified by Mr
Scargill on these grounds. It
underpinned his desire in create
a bond of loyalty between the
leadership and the rank and
file — the first committed to
fight for every conference reso-
lution. the second commited to
support every struggle with in-
dustrial action. Rock solid unity
— the very substance which has
proved so elusive to union
leaders in the past few years
— is now the NUM lodestone.
The process remtircs a figure
of contempt, and Lord Gormley
provides it. A motion of censure
was passed yesterday on Mr
Scargill’s ennobled predecessor,
who had committed two
crimes: taking a title and
leaving the union after winng
an article in the Daily Express
advising his member?; to accept
a wage offer which the
Executive had rejected.
The new leadership, how-
ever. cannot discharge its
membership when it is recalci-
trant: the support of the 250.000
miners has to be won and they
have not yet made their mood
known. The last ballot on wages
went against the Left — but that
was under the old management.
The new places much store on
the effectiveness of leadership
and on militant propaganda; in
this they will be more positive
than any other union in the
country.
By the end of this week Mr
Scargill and his comrades —
chief and most influential
among them Mr Michael
McGahey his vice president —
will have laid the foundations
of their new model union. The
troops are marshalled : will they
respond to orders from the son
of York who would lead them
through a glorious s umme r to a
winter of discontent?
Letters to the Editor
Too soon to abandon SSAP 16 The purpose of it all
From Sir Raymond Pennoek
- Sir,— It has already been
reported in your newspaper that
a special meeting of- the
Institute of Chartered Account-
ants in England and Wales -is
to take place on July " 29 to
■consider a resolution calling for
the withdrawal of Statement of
Standard Accounting Practice
No. 16 on Current Cost Account-
ing. . -
• > Throughout my term of office
with the Confederation of
British hKhurtry It has been
'clear tbat the rate' of return
of most of British industry,
measured against revalued
assets at today’s cost, is cur-
rently averaging . around 2 or
3 per cent. Historical cost
accounts based' oh .the value,
of assets when they- wertL origin-
ally constructed, issued by
individual companies, have un-
fortunately given a misleading
impression to the ; community.
toe trade unions and even toe
Government that toe rate iff
return averages somewhere
around 14. or 15 per cent If
accountants continue to refuse
to accept that historical cost
accounts issued in isolation, are
misleading, then industry can-
not expect employees and other
interested sections of toe com-
munity to understand the true
level of profitability of their
empkoing- companies. •
. No .picture in this complex
question will be . strictly
accurate for all purposes, but
the present proposal was issued
for a trial period of three years
in order that we -could aH learn
from toe experience. To aban-
don the experiment in the
, middle - iff - its operation would
be a serious mistake.
R. Pennoek.
BICC.
P.O. Box 5,
21, Bloomsbury St. WCL'
An imperfect
accounting system
From P. H. A. Kenyon.
Sir. — Those who write to
you about current cost account-
ing seem to have three different
points of view.
First, those who think his-
torical cost accounts are
enough. Or at any rale that
their minor shortcomings do
not justify the labour of pro-
ducing CCA accounts.
Secondly, those who watff in-
flation accounting, who consider
CCA In do this. Their view
is that SSAP 16’s “imperfec-
tions ” will need an experimen-
tal period to be identified; they
can then be “corrected."
Final ly, there are those of us
who, with Professor Myddelion,
believe wo need inflation
accounting, but insist that CCA
is not inflation accounting. We
believe therefore that CCA is
not just an imperfect inflation
accounting standard: it is not
one at all. If we are right
then an experimental period
will achieve nothing. We want
to go back to current purchas-
ing power accounting.
Perhaps nur criticism should
be expressed in simpler terms-
Inflation means changes in the
value of money. CCA does not -
correct for changes in the value
of money. _
rCA measures profit after
making good the ( physical)
" operating capability " of the
business. This is quite different
from correcting for inflation.
If wo had a year of nil inflation,
but with sizeable chances in the
prices nf commodities like
copner or cocoa, then cable or
rhncoiate manufacturers would
have to make large CCA adjust-
ments. j ,
Investors are not interested
in profits measured this way-
They want to know whether
real (inflation-adjusted) earn-
ings of Y pic are comparable
with those of X pic for the same
period, and with Vs own earn-
ings in the previous year. CCA
not . only fails to satisfy this
need, it does not even aim to
satisfy it It is not let us repeat
the point an inflation account-
ing system.
We in. toe accounting profes-
sion must give users what they
need. This conceptual and pro-
fessional issue transcends the
politics of selfrregulation.
P. H. A. Kenyon.
18. Lee Grove, ChigweH, Essex.
Conservation
of energy
From the Education Officer.
the Institute of Energy
Sir,— The Select Committee
report. "Energy Conservation
in Buildings," published last
week, recommends several pos-
sible measures to stimulate
energy saving. It concentrates
(predictably) on Government
investment information, and
publicity. - ' .
After reading ..the evidence
submitted t he Committee I.
drew another conclusion: that
the consumer (be lie a house-
holder or a mechanical services
engineer) is typically quite
ignorant of what can be done.
His ignorance is just as real a
barrier and must be overcome
before we can make -progress.
I have argued elsewhere
(Engineering. June. 1982) that
although sources j of informa-
tion and advice abound, few
people have ‘sufficient grasp of
the subject even to ask toe
right questions. I. can give two
examples.
In 1980 the Watt Committee
on Energy reported that Indus-
trial companies were not dis-
From Mr Richard Allen
Sir,— The majority of letters
which you have published from
managers and accountants on
toe subject of SSAP 16 miss the
point The purpose of published
accounts, as opposed to manage-
ment accounts, is not to help
managers do their job nor to
reduce the task of professional
accountants. It is to enable
shareholders to judge whether
their paid servants — the man-
agement — are carrying out
their job adequately in at least
maintaining the value of the
shareholders’ investment and in
earning an acceptable return on
the capita] employed.
Historic cost accounts have
proved hopelessly inadequate
for this task and indeed toe
consistent under-valuation of
assets has flattered manage-
ment performance by seeming
to show a rate of .return on
assets well above that actually
being earned. It may be that
CCA in whatever form is not
the best answer, but it is cer-
tainly an enormous improve-
ment both on historic cost
accounts and on CPP, which
bore no relevance to the needs
of shareholders.
One of your correspondents
raised the subsidiary point tbat
CCA is more appropriate to
manufacture than to services
and, in particular to retail. In
fact, the retail sector has been
a prime subject for takeover
for many years, stretching back
long before fast inflation. A
successful takeover is a direct
indication that the buyer is
better able to recognise asset
values than the existing share-
holder aod * believes himself
better able to exploit them than
the existing management.
Under-valuation of Jong-lived
assets, such as occurred in the
retail industry, breeds compla-
cency m management and
ignorance in the shareholder
and both attributes are fostered
by historic cost accounting.
Richard Allen.
20, Cop than Avenue, EC2.
FLEET FUELMONTTOR
Abuse of petrol purchases can be adding substantially
to your company^ fuelbiEJndMdiially the sums ma^not
amount to much but taken as a whole over a yeas they can
substantially boost your costs.
Now Swan National can reduce
unnecessary expense and ensure that
petrol bought is solely for business
purposes.
AWORKABLE,
COST-EFFICIENT SOLUTION
satisfied with toe range of
training and education avail-
able on energy topics. Since
then, several courses have been
closed for Jack of support; and
attempts in various quarters to
provide training specifically for
energy managers have flopped.
At toe Institute of Energy we
provide information on forth-
coming courses, and our experi-
ence confirms that there is
virtually no interest in fuel and
power subjects. Industry’s lack
of dissatisfaction simply reflects
toe fact that it has no idea
what it needs.
My other example is the free
advice service provided by the
Department of. Energy ■ for
energy matters. They withdrew
the service this year. Why?
Not just because of the cost:
also because of toe trivial and
naive nature of the questions
posed by those supposedly In
charge of industrial energy
conservation.
There are, however, two
pieces of good news with which
I can conclude, and neither
attributable to Government
initiatives. One is that the
Polytechnic of -the South Bank
has started work -on directed
private study in energy manage-
ment; the other is that toe
Institute of Energy has, within
the past few days, published yet
another edition of its Directory
of Qualified Energy Consult-
ants.
Once we have learnt some-
thing about the subject, and
tapped toe sources of reliable
engineering advibe. we should
find that even the so-called
policy, of "price and informa-
tion” will start to work..
Vilnis Vesma,
IS Devonshire Street,
Portland Place, Wl.
Individual versus
collectivism
From Mr A Richards
Sir, — Your correspondent
Russell To ben (The collective
versus the individual person-
ality) lias overlooked that Sir
Peter Parker, in his communi-
cation to British Rail employees,
did appeal to a collectivist
ethic, namely that of the com-
mon interest in the future
existence of British Rail. It is
that ethic and interest which
needs to be engendered and
fostered more these days, and
why some form of industrial
democracy is imperative.
No doubt some sec industrial
democracy in political power
terms, and as such akin to
workers’ control. That is, how-
ever, to become immersed in
“ the old mould " of politics.
Instead it should be seen, not
merely as a means of introduc-
ing democratic principles at the
workplace, but also as a means
of bringing about a common
concern and interest in toe long-
term viability of toe industry or
firm concerned.
If that were to take place,
then individualisation would (
not rest upon the patronising j
attitude of line managers treat-
ing employees as individuals.
Its basis would be a more equit-
able sense of social justice and
not some pragmatic manage-
ment style Which would dis-
appear overnight with chancing
environmental conditions, or the
rise of some new management
guru!
A. Richards.
35 Clif afield Road, Sheffield.
Swan Nationals Heet
FuelMonitor is a unique,
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Available to companies
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Drivers are issued with a Heet Fuel Card
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ITEMISED FUEL ~
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Forecourt Location. Quantity
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The savings in administration costs to your
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I
24
Financial Times Wednesday July , 7 .1982
Companies and Markets
UK COMPANY NEWS
Granada
warning
on profit
downturn
HIGHER DEPRECIATION and
interest charges have left taxable
profit s of Granada Group, tele-
vision and video equipment
• rental concern, just behind at
£23.S8m for tbe 2S weeks ended
April 10 1982, against 124.44m,
and Mr Alex Bernstein, chair-
man. feels these factors may well
mean some decrease in the full-
year figure.
For the 52 weeks ended
September 26 19S1. group profits
amounted to £4S.lLm at the pre-
tax level.
Mr Bernstein said in his annual
statement that 1982 would be a
year of investment which would
show a return in future years.
During the 2S weeks total expen-
' dim re on new rental assets for
both the UK and overseas busi-
nesses amounted to £60m (£32m).
'Group turnover expanded by
1 £39m to £229. 94m.
' After tax of £13.69m f£13.51m)
first half earnings per share are
shown as &lp. compared with
6.7p, bat the interim dividend is
. increased to 1.9Zp i'1.7Sp> net —
last year's final distribution was
3.05p.
Depreciation charges totalled
£28. 57m. against £23. 24m. and
interest was higher at £3.42m
(£2.47m>.
After tax and minority
interests of £83,000 l£162.000).
die available balance was
£10. 11m. compared with £10.77m.
Turnover of 67.75 per cent
Owned subsidiary Barranquiila
Investments was unchanged at
l £1.45m for the first half, but pre-
tax profits fell from £l.lm to
£733,000. Tax charge was £456,000
. against £574.000.
Modernisation work at the
Finsbury Square property was
completed last April and a tenant
is being sought Two further
properties. Prince Consort House
at Albert Embankment and Long-
bow House In the City, are in the
market for re-letting, subject to
refurbishment completion. - -
Directors say results reflect
this situation and for the year
as a whole the rate of profit
decrease is likely to be similar.
IC Gas advances 23% to top £40m mark
TAXABLE PROFITS of Imperial
Continental Gas Association, the
holding company with interests
in the fuel and power industries,
have increased by 23 per cent
from £33. 47m to £41.1Sm for the
year ended March 31, 1982. Turn-
over was ahead by £50.lSm to
£4 53.14m, a rise of 12-5 per cent
At halftime, pre-tax profits of
while minorities took £2.94m
(added £7.000). Extraordinary
debts, which decreased from
£3. 03m to £1.01m, were this lime
in respect of relocation costs
incurred by a Comp Air sub-
sidiary overseas.
The previous year's results
have been restated to reflect a
change in depreciatioo rates for
HIGHLIGHTS
£l.lm (£0.94in) were reported. LPG tanks and computer equip-
but the directors said the figures merit. This increased 1980-81
provided little guidance concern- profits by £261,000.
mg the outcome of the year.
Stated yearly earnings per £1
share advanced from tSS2p to
22.19p. while the dividend total
is stepped up by 15 per cent
from 8p to 9.2p net with a final
of 6.2p (5.3p).
The directors say that actions
initiated in the previous year
| enabled the group to operate on
a more profitable basis. An
adverse feature of tbe year how-
ever. was the weakening or the
Belgian franc, which reduced
profits by 112 am.
Trading profits rose by £5.57m
to £35.63m. Associates contribu-
tions slipped from £ll-99m to
£11.65m, but net interest payable
fell to £12.61m i£14.95m) and
investment income was higher at
£6.5 di (£6. 35m).
At the attributable level, pro-
fits were up by £4.37ra to £2S.B3m.
Tax charge was £8.6m (£6.19m).
In the year under review, the
group benefited from a slight
lowering of interest rates and,
following tbe Finance Act 19S1.
by the capitalisation of £4.55m
of interest in respect of the
Maureen oil field development.
Comparable interest of £ 1.96m
was charged last year against
pre-tax profits.
In addition, agreement was
reached with the British Gas
Corporation for an increase in
the price of gas from the Hewett
fields, effective from October 1.
1980.
The Calor Group turnover for
the year increased by 15 per
cent to £2 60.8m and taxable
profits rose to £16 -39m, compared
with £14.49m previously when
£2.9 m arising from rhe re-
negotiation of the Calor House
lease at Slough was included.
Activity in all Calor's indus-
trial markets remained depressed
Lex briefly looks at the money supply figures where sterling
SB has risen by three quarters of a point, much in line with
expectations. Granada's profits have slipped back from £2*L4m
to £23J9m due to heavy spending on video equipment and
associated depreciation charges plus a dull outturn from
bingo and property. Tootai has pulled out of its planned sale
of its Australian subsidiary because of opposition from the
Australian stock exchange authorities. Lex goes on to assess
the impact on Tootai before considering tbe report and
accounts from Finance for Industry and the con tinuin g debate
on current cost accounting.
and the results reflect a pro-
gressive improvement ip levels
of productivity aided by the
favourable impact on LPG sales
of two short spells of very cold
weather in tbe UK.
Turnover of the Comp Air
Group rose by 9.3 per cent to
£172.6 and pre-tax profits
climbed from £3-m to £6.31m.
Improved results stemmed
primarily from greater profit-
ability by the UK companies
supported by a good perfor-
mance in Africa and Australasia.
Century Power and Light
raised turnover from £2.49m to
£5.49m and made a profit of
£2.48m (£1.64m loss) which in-
cluded exceptional Income of
JElJZSm from the increase in
Hewett gas price.
Turnover in Belgium fell by
9,3 per cent to £l4.17m. The
group's share of associates
profits arises principally from
its investment in Belgian public
utilities through Antwerpse
Gasmaatschapij and UNERG.
In current cost terms, IC Gas
made pre-tax profits of £27.9lm
( £20.07 m) and earnings per
share were 12.08p (S.52p).
• comment
Imperial Continental Gas
Association's pre-tax outturn of
£41 .2m. an increase of 23 per
cent, was at the very top end of
market expectations, but an
exceptional factor and a change
in accounting policy must take
some of the credit A substantial
—the amount is not disclosed —
price Increase in gas from the
Hewett fields, which . reached
peak production in the. second
half, was backdated to October
I960. Interest, charges of
£4.545m related to development
of the Maureen field were
capitalised; while the previous
year’s figure of £2m was charged
against profit. Maureen will
come on stream by the end of
next year, but. in the case of T
block and Andrew, the poker
game with the Government con-,
tin lies. IC Gas has not denied
that the £63m CompAir acquisi-
tion was ill-timed and is now
relieved to report that CompAir
broke even net of financing costs.
A consistent policy of stocking
up for an “ average " winter pre-
vented more than a 5 per cent
increase in gas tonnage sold by
Calor with most of the. 13 per
cent profits advance coming from
productivity improvements.'
Growth from the investment in
Belgian public utilities can only
be ‘in line with the growth of the
economy, and February's 84 per
cent franc devaluation does not
make life — in sterling terms —
any easier. Up 7p at 183p, the
shares yield 74 per cent on the:
increased dividend.
Larger bad debt provisions leave FFI £3m lower
BY TIM DICKSON
LARGER BAD debt provisions against 31.7p in 1980-SI due to
during “a most difficult period a distorted tax charge.
SPAIN
July 8
Banco Bilbao ._...
Banco Contra I
Banco Extarior
Banco Hispjno : 308
Banco Ind. Cat. ...
Banco Santander 303
Banco Urquijo 17S
Banco Vizcaya
Banco Zaragoza ....
Dragaifos
Espanola Zinc
Fees*
Gal. Praciadoa
Hidroto 56.2
Ibsrduero -
Petroleoa —
Petroliber
SogoRsa - 6.00
Telefonica
Union Ban.
Price
wt
f+" or —
- a
267
- 6
237
- 5
308
- s
ioa
- 1
303
- 9
17S
342
- 9
236
- 1
83
-15
67
54.7
- 0.5
26
56.2
44.2
’+ Z2
71
- 0.5
91
6.00
65
- 2
53.2
-f 0.7
for British industry " have
contributed to the first reduction
in pre-tax profits for five years
at Finance for Industry.
FFI. which is owned by the
English and Scottish clearing
banks, was established in 1973,
though the Industrial and Com-
mercial Finance Corporation, its
best known subsidiary and a
provider of specialist long term
finance, was set up in 1945.
Lord Caldecote, FFI chairman,
announcing the results for tbe
year to March 31 1982, reported
that pre-tax profits had fallen
from £31m to £2&2m over the
years." Some companies — such as 107 management buy-outs, cara-
those whose business was concen- pared with 69 in the previous
Steps are being take n, mean- trated heavily overseas or in year. ICFC has completed 250
while, to increase FFTs borrow- some areas of high technology, buy-outs in the last four years.
ing powers and enlarge its per- had come through unscathed
manent capital by a £15m rights bnt “ there have been many
issue. Lending to larger com- casualties."
ponies is expected to rise “as
we move out of recession," Lord
Caldecote said.
Provisions against bad debts
amounted to £l&6m |£16.4m).
taking the combined total of
specific and general provisions in
respect of loan and share invest-
ments to £S6m. Capital profits
less losses on realisations, came
to £20.4m. against £18.4m.
Out of ICFC's total portfolio,
for example. 153 customers
failed, compared with 114 in the
previous year.
Total new FFI investment
for the year was £264m. almost
the same as in the previous 12
months.
ICFC, meanwhile provided
£11 9m in the form of shares,
loans and guarantees to 1,040
small companies. Some 440
businesses trading for less than
Lord Caldecote said the year
period. Profits before interest on which he was reporting had three years had 'been financed,
were £133 Jm (£131.3m) while been "one of the most difficult including 305 which were new.
earnings came ' out at 19-6p, far British industry for many Over the period ICFC financed
of which eight have failed.
Lord Caldecote warned that
management buy-outs are “ not
just financial engineering. A
thorough understanding of the
underlying business is neces-
sary before entering into finan-
cial arrangements which by
their nature create high gear-
ing levels where the manage-
ment often has no experience
of operating independently.
“In the early days about 90
per cent OF the management
buy-outs put to us were good
enough to finance; now it is
more like 50 per cent”
Asked about the sharp rise in
business failures reported on
Monday by Don and Brads tree t,
the business information com-
pany and Trade Indemnity, the
credit insurance underwriter.
Lord Caldecote Bald the r ate o f
increase in liquidations in FFTs
experience was “levelling out.”
" There is nothing disastrous'
happening in our portfolio.”
The group's large company
business will in' future be
channelled through FFI rather
than Finance Corporation for
Industry.
Lord Caldecote -said FCTs
development has been hindered
by not being able to “shake off
the mantle of lender of last
resort” so it has been decided
to drop the name.
New business continues at a
“satisfactory" leveL
See Lex
Marston Thompson ahead
TURNOVER OF brewer and wine
and spirit merchant, Marston,
Thompson & Evershed, rose from
£33.23m to £3&92m for tbe year
to March 31 1982 and pre-tax
profits increased from £5.15m to
£6.09m. At halfway, taxable
figures were ahead at £3.25m,
against £2 -61m.
Although total beer sales
during the year were down by
less than 1 per cent, sales of the
company's own beers were up.
Sales during the current year are
being maintained, which is
regarded as reasonably satis-
factory when viewed against the
national average.
Stated earnings per 25p share
rase by O.S4p to 6.89p and the
dividend total is stepped up to
2.07p (l.Sp) net with a final of
1.37p.
Taxable profits were struck
after depreciation of £L39m
<£1.22m) and £124.000 (£9S,000)
for the share ownership scheme.
Tax charge was up from £2. 06m
to £2. 56m and there were extra-
ordinary credits of £343,000
(£383,000).
(Stesco)
Turnover Increased by £1 85.6 M to E2102.0M
Net Profit Up By £7.1M to a Record E42.7M
Final Dividend Increase 22.58%
52mMfelothe
53 weeks to the
27th February 1982
ZSth February 1=31
£ Macons
£ Million
Turnover including VAT
2102.0
1916.4
VAT
(107.6)
(95.7)
Profit Before Interest and Depreciation
76.0
T\JS
Interest Payable less Receivable
8.8
15.7
Depreciation
245
202
Net Profit Before Thx
42.7
356
Taxation
120
5.5
Net Pro fit After Tax
3a7
30.1
Surplus on Sale of Properties
24X1
20.0
Dividends
10.0
8.5
Retained
44.7
41.6
Final Dividend
1J90p
1.55a
Gross Equivalent
27143p
2.2143p
Earnings Per Share
923p
9.04p
TRADING REVIEW
Net profit has increased by file equivalent of
22^22% to a record M2.7M . Action continues to be
taken to bring about enhancement of the Group's
trading profile. This has resultedinan improved
store image, together with expansion of range and
quality of fresh foods and own label goods. It has in
turn assisted the launch of Checkout 32 which has
been well received with turnover forecasts being
achieved.
FINANCE
Interest payable less receivable has reduced
by £6.9M to S3.8M for the year. This reduction has
been achieved by a considerably lower level of
borrowings than the preceding year as well as a
fall in interest rates.
Funds totalling £46M were generated by the
sale of investment properties and property surplus
to requirements togetherwfth the proceeds of
sale and leaseback transactions.^ The sales realised
a surplus of £24M ever book values.
ELECTRONIC POINTOF SALE (E.P.O.S.)
The first installation at Edmonton Green went
live on 25th January. The existing programme of
instal lation in a further fourteen stores will be
completed by the end of the current financial year.
Reve rwe costs of £3 .5M have been written off in
full against pre-tax profits compared with £Q.5Min
1980/51.
STORE DEVELOPMENT PROGRAMME
Sixteen new stores were opened dunng the
year, including two in Ireland which together
with fr/e major extensions added 532.C0C sq.ft Jo
curtota! selling area. Twenty six smaller stores
were dosed accounting for 169.000 sa ft
The development programme for 1982- 33
indudes sixteen new stores together with two
extensions and is estimated to add approximate.'/
539.00C sq.ft to selling area.
CURRENT CX)ST ACCOUNTS
A statement of the year's results, adj'jsted to
current cost accounts basis, together with figures
for the preceding year are set out below:-
1982 1931
£M £7.1
Profit Before Interest and Taxation
per histone cost accounts 51.5 51.3
Current CostOperating Adjustments 5.7 6 9
Current Cost Operating Profit 45.8 -it 4.
Gearing and Net Interest Paid 7.9 w.e
Current Cost Profit Before
Taxation 37.9 29.3
DIVIDEND
. The Board proposes the payment of a final
dividend of i.90p per share, which togetnerw-th
the interim dividend declared will amount to the
payment of a total dividend for the year of 3.CGp
per share [including imputed tax credit at 3C^}
being equivalent to a gross amountof 4.2S57pcer
share. The final dividend will be paid to share-
holders on the register of members at the close cf
business on the Sthday of July 1982 and will be
paid on the €tti day of August 1982.
ANNUALGENERALMEETING
The annua I general meeting o: ir.e Ccmcary
will be be id at The Lancaster Room. The Sa.oy
Hotel. London on the 30th July 1532.
Receivers called
in at Grimshawe
DIRECTORS of Grimshawe Hold- hands who had the resources and
ings, the diversified industrial finance that the Grimshawe
group, yesterday announced that group did not have,
they had requested their bankers The joint receivers are W. J £
to appoint receivers to the Roberts and N. J. Hamilton of
company. Ernst and Whinney.
rpx__ , , ... - - At the end of last March,
»S shares 01 Grimshawe were sus-
sion to appoint receivers had penc j e d a t i 7 p valuing the group
^t D h P m n^r^in? e ^hs?diTri^S at £371 - 382 - P The shares were
TL' tSSS “a* 555“, Ve p be,ow thc
?s“r^e eS "c S .iJ«™‘ d u be ! otaJ October Crimsbaw. ,oW
e receivers 35 g0,ng its biggest subsidiary, J. Manger
concerns. and Son, the paints and DIY
In this way. said the board, equipment manufacturer, in a
it might be possible to ensure management buy-out Since then
that as many jobs as possible the group announced losses for
were preserved, and that the the six months ending October
continuing businesses of the 1981 of £264,000 before tax; corn-
group would pass into other pared with losses of £74,195.
Guinness Peat shares
recover some lost ground
SHARES in Guinness Feat the
troubled commodities to banking
group which last Friday
announced a £15m loss pro-
vision. yesterday recovered some
iost ground, increasing by 4p to
close at 47p.
The shares were suspended at
57p iajt Thursday morning at
the group's request and resumed
trading or Monday morning at
10.13. The shares fell by 25
per cent on Monday to close
at 43p: this knocked nearly
£ 10 rr! off the company's market
capitalisation. At last night's
clcsing price of 47p Guinness
Peat is valued at £.11 m. still
below its pre-suspension value
cf £35m.
Toe group asked the Stock
Exchange to <aispend its listing
week ahead of its announce-
ment of the £15m provision relat-
ing to a California tyre business
— Performance Tire. Guinness
Peat has encountered difficulties
recovering the money from
Performance Tire, which had
imported tyres into the U.S. and
had been financed by a Guinness
Peat UK subsidiary.
The shares recovered yesterday
partly because the mark-down
may have been overdone on
Monday and partly because the
group has confirmed it is selling
control of its commodity business
to a group of managers and
investors led by Lord Kissin. the
kfe president.
The commodity deal involves
I6m of cash plus £3m of redeem-
able preference shares which will
be held by Guinness Peat. Total
value of the deal is worth
between £llm and £I2m.
USM start
for Anglo
Nordic
Anglo Nordic Holdings, tbe
industrial holding group, expects
trading in its shares to start on
the Unlisted Stock Market on
Monday, following its reverse
take-over of Anglo - Argentine
Tramways (AAT).
Anglo-Nordic announced yes-
terday that it now holds 32.47
per cent of AAT following
acceptances of its partial offer
by holders of L3m ordinary
shares.
Subject to the offer by AAT
to acquire Anglo Nordic's engi-
neering subsidiary Doverford
becoming unconditional, Anglo
Nordic will acquire between
6.56m and 9.34m AAT ordinary
shares, equivalent to 62.1 and
70 per cent respectively of the
enlarged share capital.
AAT has agreed to change its
name to Anglo Nordic Holdings
while the original Anglo Nordic
has become ANH (Hem el
Hempstead).
Intasuh above
forecast at £14m
COMPARED WITH a forecast of
not less than £13m. • taxable
profits of lutasun ~ Leisure
Group, holiday tour operator
and - char ter airline, - were
£ 1 4.08m for the year ended
March 31 1982, against a
previous £10.26m. Turnover
expanded from £10L65m to
£114.12m.
At the interim stage profits
had surged to £15_13m, com-
pared with £10 .24m, hut 'the
directors Bald they expected -a
loss in the second half.
They now. .- consider it too
early to > make a firm - forecast
for the- current year, but they
would be disappointed If -pre-tax
profits did' not reach a similar
level to those o£ 18ST/82.
Stated yearly earnings per
10 p share of This USM quoted
company were up from 14.6p to
BOARD MEETINGS
The following companies have noaifled
4 au 3 of board nwaUngs to the Stock
Exchange. Such mootings me usuaHy
hokl the purpose of ccimdering
dividend*- Official Indications we not
available aa to whether the divMeiids
era Interims or Sonia and the aub-
dhrisions ahown below are baaed
mainly on last yeefa timetable.
TODAY
Finals: — HoHaa, Sogomnw. Tort-
nology investment Trust,
Wadding ion.
FUTURE DATES
Finals: —
As are Industrial 5
i July 12
have been £12-7m f£8.2m).
Tax charge took £3.94m
, „ . (£2.71m) and after extraordinary
19.6p and a final distribution of debits' of £179,000 for 1980-81, as
2.1p net lifts the total dividend Well as pre-acquisition profits of
to 3.5p.; -This Is • compared. witb.. £3.03m for That year, the ava/i-
2Sp which would have been able balance came through at
recommended had the share gin Mm; compared with £4: 35m.
capital -been held publicly. - - Dividends will absorb £l Alm
Pre-tax ' figure was ' split (nil) leaving £8 -33m (£&35m)
between, tour operating and air- retained- “ -
line -as to £8.7 m (£7 .4m) and . pre-tax profits on a current
£5.4m J£23m) respectively, cost basis are reduced to £13.71^
lutasun Holidays earned 468.000 Application has been madejnr
passengers in the_year. ajrise.of issued share capital *to be
12 per cent, while Air Euro
increased their passengers by
41 per cent to 995,000.' • -
Intasun Holidays has taken
385,000 hookings so far for the
summer 1982 season. an
increase of 13 per cent, while an
additional 36.000 have - been
admitted to the Stock Exchange
Official List. Dealings 7 are
expected to commence oh July
12.
• comment
Intasun Leisure easily placed 10
- per cent of its equity yesterday
taken by Club 18-30 and the ^ a preliminary move to its full
newly-formed seat selling com- Exchange listing nest
pany, Air Europe Travel .- week. The 37.2 per cent rise- in
' Club- 18-30 is the main trading p r e-tax profits is- due mainly; to
subsxdiaxy^of o r M. Lancaaeiv ^ improvement in Air Europe,
acquired- by Intasun lastMay increased passengers more than
for some £4.4 m, and direc to rs offset a decline in margins, -which
intend to expand anyway should improve with tbe
able • • operation significantly Tjfc'p ir collapse wwrir the main
from summer 1983 onwards." downward ^namon prices.
Air Europe has sold aH a vaiF intasun's accounting method of
able summer capacity for the eq ualising - - aircraft ■ .financing
incr eased - fleet of nine Boeing charges has -.boosted pre-tax
737-200 airo^-T- with two profit levels. The £40m leasing
leased fro*® Air Florida — com- agreement with British Airways
pared with seven • in summer ^ financed in a similar way
1 W 1 *-.- ■ ■ .jl. not only adds- capacity and
The. group has agreed wrtn - flexibility to AE. hut postpones
Briti sh Airways to, acquire two ^ day when. --.profits are "de-
757 . aircraft from Boeing for pressed by this method. Intasun
some £40m. One is to be delivered switched business back to
in March 1983, with the option Mediterranean and away
to sell to BA in Spring 1987, and from the United- States. Soft
one in March 1984. It is intended currencies have boosted ex-
that the aircraft will be financed
in sterling-over 10 to 12 years.
Interest and financing charges,
payable under aircraft finance
and lease agreements, are
change profits to about £1.5m
and the company’s £37m cash
mountain at the hank continues
to grew, bringing is another
£L5m interest contribution.
charged to the P and L account Growth options centre on build-
in such, a way as to spread them ing up specialist youth and old
evenly over the periods of the age travel companies and de-
relevant agreements, the direc- v el op ing the main stream holiday
tors point out tint had these business into Scotland. The
costs been charged as incurred, shares fell lp to dose at 123p,
pre-tax figure for the year would yielding 4.1 per cent
M. J. H. Nightingale & Co. Limited
27/28 Lovat Lane London EC3R SEE
Telephone 01-621 1212
1381-82
Gross Yield
J*/E
Fully
High Low
Company
Price Change tffv.(p) %
Actual taxed
120
120
Am. Brit. ind. Ord.
120
_
6 A
5J
10.9
13.4 '•
131
100
Ass. Brit. Ind. CULS...
131
+ 1
iao
7-fi
—
—
75
82
A1 rap rung Group
71
—
6.1
as
ai
13.9
51
33
ArmltoQB & Rhodw
43
—
4,3
10.0
as
8.1
227
187
Barton Hill
227
—
11.4
5.0
9.5
12.0
110
100
OCL 1 1 pc Coin#. Prof...
110
15.7
14J
__
__
285
240
Cindlco Group
285
—
26.4
10 J)
10.7
1Z0
104
80
Doborah Sorvico*
80
—
6.0
10.0
3.0
5.6
131
97
Fnmk Honoll
131
+ 1
94
4.8
11.8
24.3
83
39
Frederick Park or
74
‘ ' _
6.4
au
3^
7.2
78
48
Gsorpa Blair
.53
--
—a
_
102
93
Ind. Precision Castings
98
—
7J
74
7.1
10.Y
110
1U0
Isis Conv. Pref —
108
—
1 S^
14.5
TT3
94
Jackson Group .......
105
—
7.5
7.T
3-2
6.7
130
108
Jamas Burrough
123
+ 2
9.6
7.8
9.0
10.0
334
230
Hobart Jsnklns
230
—
31.3
13.6
3J
ai
77
51
Sorenons **- A **•
77
+ 2
5.7
74
10.0
12.0
222
164
Tordiy & Carlisle
156
—
11.4
74
7.0
11.9
18
10
Twinlock Ord
18
+ h
—
80
68
Twin lock 15pc ULS ...
79
' *
1S.0
19.0
__
_
44
25
Unilock Holdings
25
_
3.0
12.0
4-5
7.6
103
73
Wahar Alexander .....i
84
—
BA
7.6
5^
9.8
283
212
W. s. Yearn
234
—
14.5
6-2
ai
1Z3
Prices now ntitoMi an Prestnl page 48148.
i% lower
Inchcape sells i Yearlings
shareholding
Slralis Steamship Company bas
reached agreement to acquire , _. ... , .
Inchcape Berhad\ shareholding , l he ra ltI° r J h lf^5 ek 8 S
in :he Oil I Asia i group of com- ° f ,oc = ] * uih0T 'F b0 ?^ »
panics for a cash consideration ! P ?r ««*. **own threeeighths
of S?12.5in i£3.36m». • of a t P ereenmge point from last
Oil < Asia i provides support wcck and compares with 13. per
vessels and services to rhe off- I ? ent j? ^ ear a ®°" ^ on ^ s ^ur e
shore niifieid industry in South . 'vsued at par and are redeemable
East Asia. SL-aiLs Steamship is 5? > on Jul -' 13 1983 -
per cent owned by Ocean Trans- \ A full list of isues will be pub-
port and Trading of Liverpool, iish.ed in tomorrow's edition.
Copies ct the Annual Aepcrtard Acre jntia , . , aiiai?ie from theSecreiar^^esw Stores : '■Welngs; FL3,
Tescc House. Delaware Read. Chesn unr. v/awam Cross. Herts. EN3 2SL
DIVIDENDS
$
1.
Dale
Corre-
Total
Total
Current
of sponding
for
last
payee ect
payment
div.
year
year
Equity Consort onL .
.... 6.19
Aug 6
6.3
9.54
9J2S
Enuity Consort defd.
.. in.es
Aun 6
10 15
10.6S
10.15
Granada
im l.9i
Oct 1
1.75
4.8
IC Gas
.... 62
Aug 20
5.3
9.2
S
lQ;asmi±
. . 2.1
Aug 27
3.5
__
Donald 3IacphPrson
in-. 1.5
ScpT 1
1.5
—
42
Marslon Thompson
. .. l :S7
—
MS
2 07
1.8
Resmore . . .
... 0 53
Oct 5
0.5
1 n 5
R. W. Toothill
... 35
—
3.5
6.5
3.5
F. Kfhln Watson .
.. 2.2
—
2
3.5
3.3
D:v:Scr.ij shown pence per share net except where otherwise staled. 1
•Equivalent after allowir.r
for scr
p issue.
+ On
capital
icrreased by rights
and/or acquisition
issues.
; USM
Stock.
Machine Tools* Engineering Products - Maierials Handling - Scrap Processing ■
Id his Statement on the 1982 Accounts, Sir Jack Wellmgs, CBE, re f erring to home
and overseas trading, said:
Our overseas companies again achieved record results but the co ntinuing low .
demand in the .home market throughout the year made it certain that our profits would not
improve on the low level of last year.
We expect to maintain a substantial volume of overseas business but without a '
sound base of home sales we cannot reach an acceptable level of profits. Our worldwide
merchanting and distribution organisation continues to prosper and, to add to our range,
we are constantly searching for new engineering products other than those we manufacture.
We are optimistic for the future and, as soon as there is an im p rovement in the
economic climate in the UK, we are confident of a return to profits which, more truly
reflect the potential of the Group.
Salient figures to 31 st March, 1982
Sales
UK Exports included
Profit before Tax
Ordinary Stock Diridend per Unit
£000’s
143,635
53,674
4,455
5*25p
AcciytftheRqpartaidAiDa^
March, 1982 can be obtainedfiromThoScwreteiy, - .
The 600 Group PLC, Wood Lane, London W127RL
ESTABLISHED 1834
1379
C Bte h fl MM
Lathes
THE NEW THROGMORTON
TRUST PJLC
Capital Loan Stock Valuation—
6 July 1782
The Ncs Asset Valoe of £1 of
Capital Loan Stock h 29!.88p
calculated on Formula 1.
Securities valued at middle
market prices.
THE TRING. HALL
USM INDEX .
125i <+0^J
Close of .bosine88 6/7/82 "•
Tel: 01-638 1591
BASE DATE IQ/H/WMQ0
ladbhoke index
Qoise 550-TOS (+6)
/
If
a»i7u!
ere
* •
*
:
• •
• ;
■
PROFITS INCREASED TO
£15.5 MILLION
SHAREHOLDERS’ FUNDS INCREASE) TO
£186 MILLION
AVAILABLE RNANCIAL RESOURCE
£100 MILLION
1 ■' : .v.--
GeratdMRonson,
.% < ^irmanqfHer* mCorporation.
were made from within, our own organisation and this is
aieflectiaa onthe group's policy of cultivating
management in depth.
confidence they have shown in us. At 31 March, 1982 we
had total available financial resources, either in cash or in
undrawn bank lines, in excess of £100 million.
Substantial
Co. Limit* ; . .. ^ ;
- J^taxptt^fbr^ "
v " Y £155thflBmm ftmds ihaeasedby 40% to
£186xmTKoD.Theincreaseinshaieholder^ funds indudes
The constant strengthening of our financial position has
been reflected by the continued support of our bankers.
In the year under review, we conduced two major
loan facility led by Barclays Merchant Bank and a
Samuel and Credit Lyormais. Both syndicates comprise .
some of the worlds leading banks and we are proud of the
property fleets.
conqjaniesunder^ Hading Corporation Since the
; year end we have acquired the outstanding minority
interest inHeronMotor Group andhave combined the
FIVE YEAR FINANCIAL HISTORY
Year ended 31st March.
figures in £000
1982 . ■ 1981
1980
197?
1978
TURNOV0L
322,000 302,686
315,422
294753
265,522
PROFIT BffORE
TAXATION
15,496 13,433
10792
8727
' 4521
SHAREHOLDERS’
FUNDS
186,359 133,268
79,915
70,207
60/483
As a result of our available management and financial
resources, we are now in a position where we are able to
make a substantial acquisition Our ratio of interest
bearing debt to shareholders' funds has reduced substan-
tially over the past few years and at the year end after
tak^ into accountaoshbalance of£27xnillion, stood at
58% giving us much more room for expansion
Our £49.4 miHionbid for Associated Communications
Corporation was unsuccessful but we continue actively
to look for further opportunities.
Copies of ike Report and Accounts are
available from The Secretary,
Heron Corporation PLQ Heron House,
19MaryleboneRoad, London NW1 5]L
i a«
att» MINING NEWS BIDS AND DEALS
Tax saving lifts I Bemrose to lift
gold mine
net profits
BY GEORGE MILLING -STAN LEY
dividend 150%
A SHARP reduction in the pro- ■ goM operations were 1.3 per cent
vision for tax and the state's down at R237m,
share of profits in the latest Jo ™ ®J}
quarter gave rise to an increase 3 , res 2,664 4 . 2 tn
of 37 per cent in overall profits Doomiometn 12,450 H.158 1S.S33
of the South African gold mines DnefontMn 122,733 76,483 ai.aca
in the Consolidated Gold Fields gg
Net profits for the three *!""* t2 *S t3 «5 R S
months to June 30 were 11182m t includes statu assistance.
(£91zn), against R133m for the There were one or two
first quarter of the year. encouraging . features of toe
+ . __ Vomerspost , t2.878 t3.170 t3,S79
VleMentsin 404 487 455
J.82m t Includes state assistance,
r the Ttiere were one or two
encourapng . features of tire
Even the best occupational penaonschemesleave
roam for individual members to improve their
• benefits by additional voluntary contributio ns— but
finding an AVCPfen which achieves this without
cosfingafortuneinadrrmislTafion is ncft always easj^
That’s what rrakes London life's AVCHan
saerial-we offer highly efficient administration, and
tnerels no need toadiust the stratecraofvour exisfincr
The lower government off- reports from the individiisd
take came about mainly because notably the youn*,
of a fall of R38m In the aggregate .
amount payable by Driefonteln
Consolidated following last year’s ™ tu
merger between the East and
DrMonteiu SS^^SbESSftirtS
Gold Fields warned, however, .in the gold grade to cut working
that the net tax saving is still costs.
subject to the scrutiny of the
contrast.
marginal
fete entrants seeking to improve their retirement
benefits-takes maximum advantage erf Inland
. Revenue concessions and provides tax-free benefits
on retirement
Another impo rt ant feature is thatthePlan can be
used as a valuable fringe benefit for directors,
. executives and other key staff-providing a
. significant recruitment incentive aswell asan overall
improvement inconditions of employment
When you choose an AVC Plan from London Life
you have all the security and confidence of knowing '
that it comes from one of the first UK life offices to
enter thepenaons field, and is backed by oneofthe
most impressive investment track records in the
industry. Whafs more, London lifeneverpays a
penny in comrrusaonto intermediaries or even to its
ownstaff-so employees can be cerfamthat ofltheir
money is investedfortheir benefit
If you would like to find out moreaboiifrTjnnrion *
Life’s AVC Han fill in and return the coupon beloui
John Ix»we,TheLondonIifeAssodafion lid,
| Reepos^lOO Temple Street, Bristol BSL 6Y3. .
w Heasesend meddalls of Londonlife’s AVCHan.
Company,
Government Mining Engineer, Ventcrspost continues to give
and may have to be adjusted. cause for concern. This mine
Once again, the continued fall managed to boost gold output
in the rand /dollar exchange rate by m inin g slightly higher grade
helped to offset the decline in ore, but net profits were lower
itihe bufllion price, with the result following a sharp reduction in
that the ppce received in rands the amount of state aid received,
by the an dividual mines was only Assistance under the scheme
sttgbtiy lower than in the pre- was
vious three months.
Nevertheless, this lower price.
RJ.41,000
Rl.Olm last time.
Gold Fields rose 13p to 357p
combined with on overall 2.8 per In London yesterday in advance
cent rise in working costs, was of the publication of the reports,
enough to offset the benefits of but this had more to do with
an increase in the total tonnage tire, generally firmer tone of the
milled and a marginal rise in sector than with any optimism
gold grades. Thus profits from over the results.
BCR to concentrate
on drilling in U.S.
CANADA'S British Canadian doped. Only one of these wells Is
Resources fBCR), the drilling located in Canada.
'*“2* _laun * ed ‘Ta'TH'ovendrer BCR says that despite recent
1880, reports net earnings fbr significant tax changes made by
airier Manrh 31 of the Alberta Government and the
C$481,392 (£216,501), including Federal Government to revitalise
foreign exchange ga ins of the oil and gas industry in
$395,530. Net earnings from Canada, the company does not
operations come out at $85,862, plan to increase its activities at
or 3 cents a share. Figures for ..this time, but will concentrate
the first quarter of 1981 were its efforts in the U.S. where it
not produced, although the fuD-
year produced net earnings of
C$1. 21m.
Sales of petroleum and natural
gas during the period totalled
S5S3.170 while interest of
$345,854 brought gross income to
$929,024. Expenses took $748,162
and deferred income taxes
$95,000. Retained, earnings at
the beginning of the period were
$128,697.
expects to
approximately
year.
participate
70 wells
Oil and gas
move for
Poseidon
THE AUSTRALIAN gold pro-
I (If you prefei; you can caH John Lowe on Freefone 91St g
to discuss your requirements personally) 1
This advertisement is issued in amiplianeevdth theTeqidrementsof The Stock Exchange
It is not an offerof, or an mediation to sid)ScribeforoToVianaseacquire,arty secu r ities
of Intasim Leisure Croup pic.
As at March 31- the. company ducer Poseidon is moving into
' had no debt, and working capital gas exploration, in the
of S9.61m, of which a substandfal Surat Basin of New South Wales,
portion has been committed to Poseidon is acquiring a 15 per <
the company’s explor ati on cent interest in Authority to ■
programmes. Prospect 309P. in the [western
During the quarter BCR parti- section of the Surat The other
cipated in 47 wells. Of these 37 participants in ATP 309P are
were either drilling, testing or Oakwood International Petro-
awaiting completion, two were lenm, Patrick Petroleum, Ampol
gas discoveries and eight aban- Exploration and Balmoral 1
• • r 7, Resources-
. - . The company, is also acquiring
i a 10 per cent interest In
■ 1 1 ' i Petroleum Exploration * Licence
1S2 in the southern Surat where •
leaf TheStockExchannj. o^er participants comprise .OU
srspg
Oakwood.
Intiasm leisure gram
public limited company M
(Incorporated in England under the Companies Acts 3948 to 1981)
Authorised
£
6,000,000
Share Capital
Ordinary Shares oflOp each
Issued and
Fully Paid
£ •
5^63,70a
Application has been made to the Council of The Stock
Exchange for the whole of the issued share capital of Intasun
Leisure Group pic to be admitted to the Official list It is expected
that dealings will commence onI2th July, 1982.
Particulars relating to Intasun Leisure Group pic are available
through Extel Statistical Services Limited and may be obtained
during usual business hours on any weekday (Saturdays excepted)
up to and including 26th July, 1982 from;
Barclays Merchant Bank Limited
15/16 Gracechurch. Streep London EC3V 0BA
Confidence
at Pauls
& Whites
Uncertainties relating to the
Nigerian economy and the
depressed brewing and distilling
conditions in the UK will make
It difficult to maintain the
relatively high rate of growth
achieved last year, Mr M. G.
Falcon, chairman of Pauls &
Whites, tells members.
“ Nevertheless the directors
have every confidence that the
results will -continue to improve,"
he adds. ,
As already known, pre-tax
profits of this brewing and
agricultural concern moved
ahead by 25 per cent to £10.7Gm
for the year ended March 31
1682, sales improved by 12 per
cent to £27 lm and exports rose
from £1 6.42m to £26. lm, a 59 per
cent boost.
On the malting side, further
penetration of overseas markets
led to increased exports to offset
reduced demand from UK
brewers and distillers, while the
agriculture sector gained an
increased share of the animal
feed market.
The concentration of produc-
tion facilities for food flavours
has enhanced the group's
position in this industry, the
chairman says, and the perform-
ance of all overseas operations
improved.
What's inside the Tilbury Group?
Very briefly, twelve subsidiary or
associated companies active in many
aspects of the construction industry
throughoutthe United Kingdom.
These activities include civil
engineering, building. plant hire and
sales, mechanical services, property
development, aswell as the supply and
laying of road materials. This work Is
carried outfor a wide range of clients in
both the public and private sectors.
Despite a 1 5% reduction jn turnover
due to the continued recession, an
advance in trading profit of over
£22 million was achieved in 1 981 .
Fbr an update on Tilbury send lor the latest
Annual Report.
Apply to: Tilbury Group Public Limited Company
Tilbury House, Rusper Road, Horsham,
West Sussex RH1 2 48 B. Horsham (0463) 69031 -
Tilbury Group
Public Limited Company
Towards a Century 1 884-1 984
Bern rose Corporation yesterday
backed up its rejection of Banal's
£ lfi.lm bid with a forecast of
much higher dividends and
profits for 1SS2.
Bom rose, which is engaged in
security printing and packaging,
said it expected pre-tax profits
would be in the region of £3m,
compared with £2.37m last year,
while its dividend would be
raised to lOp from 4p.
At the post-tax level it expected
profits would be "in the region
of £2J5m against £2.17m last
time.
“The overall performance of
the group in the first five months
of 1982 has been most encourag-
ing in spite of fierce competition
and depressed market condi-
tions.' 1 It said in its appeal to
shareholders.
While stressing that forecast-
ing was difficult at this stage of
the year, Bemrose said security
printing had made a vigorous
start while packaging had im-
proved on the comparable 1981
perictl. Despite tire severe reces-
sion in world transfer printing
markets it foresaw some recovery
in its sales in this area..
Despite the proposed 150 per
Sunlight backs up
its bid for Johnson
Sunlight Service Group yester-
day forecast a higher 1982 profit
and dividend to back up its
£33 .2m contested bid for John-
son Group Cleaners.
Sunlight said it expected con-
solidated pre-tax profit of the
group in its present form would
rise 25 per cent to "not less
than £2.7m ” while it is proposing
a 20 per cent dividend rise to
4.05p.
In 1982 it made a pre-tax
profit of £ 2 . 16 m and paid a
dividend of 3.375p.
S untight last week announced
an offer of five ordinary shares,
256p nominal of convertible, un-
secured loan stock and 380p cash
for every four Johnson ordinary
shares.
In its formal offer document,
sent yesterday. Sunlight also
denied Johnson’s charge that It
had made no serious attempt to
get Johnson's directors' agree-
ment to the merger and that It
had demanded an answer in “a
ridiculously short time scale."
“My colleagues tried hard to
obtain your board’s agreement
but they were told quite dearly
at the meeting that Johnson was
not for sale," said Sunlight chair-
man Mr John Franks. Only when,
the alternative' 'of some other
form of merger was raised did.
Sunlight ask for a decision in
principle by the end of the week,
he added.
Sunlight, which has linen hire.
laundry and dry cleaning and
computer and security interests,
said size and a diversified range
of activities were increasingly
important in the cleaning in-
dustry, which was undergoing a
period of rationalisation.
Johnson's main activity is dry-
cleaning, though It also has
workwear and towel rental and
linen hire services.
ASSAM FRON TIER
CONSIDERS OFFERS
A subsidiary of Wrengatc has
acquired from Sime Darby
Berhad 232,421 Ordinary shares
in Assam Frontier Tea at 312p,
and 192,336 preferred stock units
at 351p (24.73 per cent and 81.85 |
per cent respectively). The
ordinary and preferred stock ;
units carry .rights to 53-29 per 1
cent of the votes.
Caparo Group, which Is acting j
in concert with W re o gate, owns
203.000 Assam Frontier ordinary
121.60 per cent) and 15,250 pre - 1
ferred (6.49 per cent).
Offers will be made by a com-
pany, owned jointly by Wrengate
and Caparo, for Assam Frontier
on the above basis.
TEe board and advisers of
Assam Frontier state that they
are considering the offers and
expect to contact shareholders
shortly. In the meantime they
are advised to retain their hold-
ings and to take no action.
Plessey offshoot buy-out
FOUR SENIOR executives of the in the buy-out are Mr Ron
Plessey Group have completed a Clark, a former managing direc-
management buy-out of the con- tor of Plessey’s electronic com-
sultancy operations of Plessey ponents division, who will be
Assessment Services. The new chairman, Mr Anthony Warren,
company is called Reliability finance director and company
Consultants. secretary and Sir Kenneth Feam-
The establishment of the com- side, a director.
pany will guarantee outside
clients’ confidentiality, according
to Mr Brian Mair, former manag- . __ , _
ing director of Assessment Ser- DUPORT/SAVI LLE
vices and managing director of GORDON DEAL
Rejiability Consultants. Duport and J. SavlIIe Gordon
“ Operating in the defence Group say agreement In principle
industry it was difficult at times has been reached between their
to convince clients of our inde- respective subsidiaries whereby
pendence,’’ he said. Duport Properties will sell the
Reliability declined to reveal Vaughan Estate (an industrial
how much it was paying but said trading estate at Tipton) to J.
the purchase price, which did Saville Gordon Properties,
not involve the purchase of Consideration is a cash pay-
assets, was. less than £lm. ment of £4.75m (the value in the
company employs just books of Duport Properties at
! under 40 staff at its Titchfield, January 31 1982). The Vaughan
Hampshire, headquarters and Estate will continue to be
expects to achieve turnover of administered by Duport Proper-
more than £750,000 in its . first ties ^ ^
C0m P a ? i f s It is not expected that the
wll account for 25 per cent to disposal will have a significant
30 per cent of its business. effect on profits of Duport
t* 1 ® availability Group. Proceeds will be used to
f reduce Du port's borrowings and
defence and telecommunications the group is expected to benefit
cost e MseS“ d eqmpraenC and 0Q fr °m flexibility which will
“rrJu ^ . . result from a reduction in level
The other executives involved of gearing.
Audlotronic details
Details of an anticipated
capital reorganisation for
Audiotronlc Holdings have been
announced in a circular to share-
holders from Mr Alexander
Macpherson, the group's chair-
man.
Each holder of the lOp
preference shares, under the
l proposed terms of tire reorganisa-
tion, will receive 50 new ordinary
2^»P shares in place of 100
preference shares. Each holder
of the 10p ordinary shares will
receive six new 2.5p ordinary
shares in place of 100 ordinary
sbares.
The reduction of the capital
*111 . sllow the accounting
elimination of Audiotronics'
accumulated deficit of £4^m and
DELTIGHT OFFER
An extraordinary meeting of
Deltight Industries has approved
an increase in the group's share
capital.
Accordingly the subscription
agreement became unconditional:
2.7m new ordinary shares .are
*!^°*t*d to the subscribers
(Newship Industries) in ex-
change for £351,091.
This is expected to be Imple-
mented within five days. The
transaction gives rise to a
mandatory ■ bid obligation upon
the subscribers,
The offer will be 13p for each
Deltight ordinary share
tbe creation of a special reserve
of £678,000:
Audiotronics announced on
May 25 the sale of its loss-
making Dutch retail subsidiary
Allwave. ’Hie board now believes
that despite a consequent reduc-
tion of the group’s short-term in-
“fJMeaness. additional capital of
£400,000 is still required as a
prerequisite for the survival of
the group. A rights issue for this
amount is envisaged.
Emphasising the importance of
tne proposed restructuring and
tne continuing precariousness of
tne group's financial position, the
board yesterday indicated further
tnat The only alternative would
ne a realisation of the remain-
ing assets, offering 1 little to
preference shareholders and
nothing to ordinary shareholders.
STANDARD SECURITIES
Standard Securities has com-
pleted the sale of 187/205 St
John Street, EC. for . £1.4m,
being £110,000 in excess of the
valuation which was carried out
In connection with the com-
pany’s listing on the Stock
Exchange in April 1982.
JOHN CROWTHER
BEAUMONTEX ' j
John Crowther Group has ,
acquired Beaamontex from the ]
Beaumont family and the
liquidator of Rexmards and
Gerside. ■
Financial Time s Wednesday July 7 1982
LONDON TRADED OPTIONS
July 6 Total Contract. 8898 Calls W48 Pute MO
1 I Jul y j oet. ! ^ .J .
«>" raw :«?•"’! vo1 - ?‘£™\ V ° L i «
cent dividend Increase the group
should have a strong positive
cash flow. On the anticipated
level of pre-tax profits' the divi-
dend would be covered 22 times
by attributable historic cost earn-
ings. At a share price of I40p
the dividend provides a gross
yield of 10.2 per cent.
Charging that “ Bunzl has got
it wrong" Bemrose said divi-
dend cuts in 1979 and 1980 were
responsible given lower earnings.
Bunzl confused a reduction in
advance payments from custo-
mers with additional payments
and was £2m out in calculating
cash flow, Bemrose claimed.
It alleged that Bunzl had
given a false impression of
: Bemrose "S borrowing position by
commenting only on its 1980
figures.
Bunzl was still dependent on ;
cigarette filters for much of its ;
profits while overlapping pack-
aging activities, advanced by
Bunzl as a reason for the deal,
accounted only for a small part
of turnover, Bemrose said.
Bunzl increased Its bid by
£2.3 Lm on June 3 Oto £16.12m
after its original offer secured
acceptances from only 0.8 per
cent of the ordinary equity.
BP 10) ' ge
BP ic) 3®
BP (c) 30
BP <P> • 28
BP IP) 30
cu (el I ll
Conk Gkl tali 33
Cent. GW (C)j 36
Con*. 0W (c)j 46
Con*. CW(p>| 30
Con*. GW (pi 33
cue*, to 2
cun*, (a ! £
gec to sc
CEC tej si
GEC tCI BC
GEC (a) «
GEC to) LM
GEC tpj S!
CEC tP) W
CEC (pi «
CEC (pi j IOC
Gr'd Mot, (Oh ifl
Gr'd Mot. (Cl 2C
ora Mot. (ci! 2i
Qr*d Met. (0^. 22
Gr'd Mat. ley 94
Gr'd Met (p)j 21
Gr’d Mot (ph 22
ICI (c) 28
ICJ (p) 30
ICt (p) 33
Land Sea. (ck 28
Mitt & Sp. (CR 12
Mks&Sp. id M
Mia A Sp. (O) 18
Shall M 33
Shall tei 38
Shall <ei 24
Shall <p) 3fl
Shell ip) 4S
Barclay* tel ; 3®
Barclay* tp> ! **
Imperial id ; J
Imperial (el ; o
Imperial (e) I J
Imperial lo> [ JO
Imperial (e) J1
Imperial (p) 10
Imperial (p> ' H
Lasmo (cl 26
Laamo (e) 26
Laamo Ic) 30
Laamo (cl 33
Lonrha (a) 6
Lon r ho (e) 7
Lonrho (O 6
Lonrho (c) »
Lonrho (p) J
Lonrho (p) 8
Lonrho ip) 11
P AO (e) J3
P*C (c) 15
Racal (e) 39
Hacal to) 42
Racal (□) 46
Racal (p) 42
Raoa! (p) 46
RTZ la) 39
Vaal Rfs. (0) 4
VaaJ RTa. (cl ■ 4
C=Call
BOO | 220 '
23 I 18 i
- I 250 ;
- 200 I
- 150
15 120
61 85
10
- 22
1 S
_ 46
10 41
16 30
43 25 i
BO 14 I
3 lO
~ 12 I
Auguot
13 2
40 2
36 1
25 2
15 105
7 k 101
2U -
3 100
71* -
27 ~2
10 -
4 6
22 2
12 >a 189
6 136
5 131
2 1
4 —
11 40
20 2
12 58
68 1
38 28
12 27
3 30
18 50
10 -
21*1 5
1 I -
November
27 —
43 —
26** —
171* -
12 5
6 12
4*3 —
SUal —
BO 6
38 —
24 S
14 -
23 11
14 128
8 308
21 1
24*3 110
9*1
6 100
10** SO
■Is'll' 1
10 i
P=Put
23 —
98 —
73 -
43 -
25 2
32 —
30 4
4*i -
3 -
EUROPEAN OPTIONS EXCHANGE
Aug.
Yd. i Loot
New.
Vo). | Last
GOLD C
GOLD C
GOLD C
GOLD C
GOLD P
GOLD P
GOLD P
*328 i 20
SS50 7 i 3 5 13 | - -
5376 —I — SO 7 -
fd - j = 7 i ll 6 IB
83251, 5 ! 19 - - I - “
S360i -
Feb.
Vol. | Last Stock
- 1 - I S3 10.00
' . -i,
12-5* NL 81 87-91
F.110I 30
F.115 -
F.llOl 25
12 NL 81 86G8
C F. 102.801 _ SO i 1.80
101* NL 80 86-93
C F.100I 10 I 0.70
C F. 102.50 1 - | -
111* NL 82 88-02
C F.100I B | 2.10
- IF.lll
_ I — IF. 100, 20
- I - I 80 [ 1.50
ABN P
ABN P
AKZO C
AKZO C
AKZO P
AMRO C
AMRO C
AMRO P
HOOG C
KLM C
KLM C
KLM C
KLM C
KLM P
KLM P
KLM P
NEDL C
NEDL C
NEDL P
NATN P
NATN P
PHIL C
PHIL C
PHIL C
PHIL C
RD C
RD C
RD C
RD P
RD P
UNIL C
UNIL C
UNIL P
F_zao
F.300
F22.50
F.25
FJ5
F.4S
f.so
F.50
F.17JW
F^OI
F22.50
F.25
F^7.60
F30
F.90
■ F.100
F.SO
FJO
F.190
F.160
F.140
July
S i 3.30
ID lio
17 i urn
10 Q.IO
110 s
7 11.80
3 2.40
6 | 2.80 Bj
B8 0.40 B
2 6
30 OJIO
1 0.10
2 0.10
1 0.90
20 2
”8 i
20 4
9 6.30
20 3.50
28 • 1.90
63 f 6.50
11 12.70
2 I 6.80
9 I 2.50
2 3.30 B
S 1.50
SO 8.80
35 CL20
4 7.20
81 2
28 0.40
121 2.10
12 8
1 8.90
8 8.80
8 5.90
10 "i
1 4.50
4 8
lF.14.70
'F.88.10
- IF.11L20
— I - F.115^0
a 9
17 3.30
6 8.80
B 3.70
.'“H 1 ■-*
1 ti
TOTAL VOLUME IN CONTRACTS 1266
A=A*Ked B-BId C=0all
HARMER ACQUIRES
875% OF FIT .
The offer by Harmer Securities
for Finance and Industrial Trust
bas been accepted in respect of
2.52m shares (87.5 per cent).
These include 1.65m (64 per
cent) held by Harmer Finance,
of which Harmer Securities is a
wholly-owned subsidiary.
Offers have been extended and
will remain open until July 23.
ALBERT FISHER
Mr A B. Millar, the chairman
of the Albert Fisher Group, has
purchased through Alrstar, a
company controlled by him,
299,999 ordinary shares in the
group. He is now interested in
1,167,159 shares (19.45 per cent).
Mr P. D. Brown has disposed
of 215,558 shares, reducing his
holding to 483,602 shares
GEORGE SPENCER
Gilstan had disposed of 223.050
ordinary sbares in George
Spencer.
Mrs S. H. Livingston is a direc-
tor of both companies, and is
beneficially interested in the
share capital of Gilstan.
As a result of the disposal Mr
S. H. Livingston ceases to have
a beneficial interest in 223^050
ordinary shares.
NSG/DAWSEA
The Scheme of Arrangement to
effect the amalgamation of North
Sea df General Oil In vestments
(NSG) and Dawsea has been
sanctioned by tlic High Court.
Dawsea has become a wholly
owned subsidiary or NSG and
certificates for Dawsea jirdinary
shares and loan stock now cease
to bo of value.
Thbadwriaamom is fanuodn compionce whh ihe requronientsaf
itaCaunciaITta Stock Exctanfja.
ANGLO NORDIC HOLDINGS PLC
0n “‘ POra ^ Br,B ^^
•fia rogtaml n Cn g ltt i J Na_ 253831
AN INTRODUCTION TO THE UNLISTED SECUF&T1ES MARKET
by
Standard Chartered Merchant Bank
Limited
The t T°7 ip f^ r has recently agreed to acquire the whole of the Issued
share capftalof Doverforti United, an industrial holding company with
engweenn^ and proper^ interests. Consideration for the acquisition la the
0rcSnarv Sh8ras of Nordic HokSngs
OrdinarYSharesonafomKiia
Authorised
000,000
SHARE CAPTTAL
Ordinary Sharesof Speech
Issued
£528,125
ittoemphasisadthat
®®^®^®ISwvic8andaf6dsooncfa3lavc
weekday (BankHofidays and Satufda 1
weavatebteinthBExtei
lj ^fl«iCnick5hanlc r
15th Root,
Tha Stock Exchange,
Lontton EC2ftl 1HA
■M
ir
“>»s
^Financial Times Wednesday "July 7 1982
fksjpaate* «uf Markets
COMPANY NEWS
sees
-i
r ^E-TAX losses W 1300,000 for
rtiie 26 ■weeks to Apcfl !5 are
reported by Donald Wacpk^eoa
t conned wtth profits of
£820,000 preraocsty.
Bot Mr Res caterer, (be da^
an, says tine group is now
^trading ppfflaMy -. nod fee
■ tatetnm dhfctend. is W^xrecfo.
=■ toed a* LSp- net— test mr a
of 4-2p was paid from.' a
stttphw of £2J?ftn. -
The dhatoman bad mdteaftedtn
flris fnamstecSMnr'af
■would tocos: « gn«ii boss at six
■ mouQlS. -
He tww expects ewMa&twif
[ resMfcts to sbow a stibstxotioft an-
provKoneot over those for Cto
flrat totf, TBna sbooSd lead to
; a fDOfeer oatMm ‘'•wtecto win
not fee uosettsfactDry taring
; regand to afi the
Tie toferian. boss was caused
primarily by taming daffeosnets
to seJIdng prioa increases, raw
materiel cost toczesses . send
fanwiai wage and. salary setifle-
says. ..
Tie bad w£der and.i&e «s>. the furniture lnfitustiy has inevlt-
»rojn g absence s say app ro- ablyled to substantial redactions
(W)te swowoy »' a» leweft of in demand for coating products
artwsty'to O&xnanufautxtttes tn- . and. «ifw> for the J&stunss end
fittings marketed by die Unerman
division.
Overseas companies continued
to make a satisfactory contribu-
tion but development expenditure
on ' some of the group’s more
teceat ..aecfmsitions . na$ -been
somewhat higher than antici-
pated* particularly in _ South
Africa and North America.
Interest " charges rose, to
£782,000 (£468,000), rejecting
mainly- -the cost of- borrowings
incurred in making recent aqui-
sftjpns. ■
-‘CCA losses before tax itfere
£684,000 for the half-year.
. per 25p share in the
half-year -are shown as com-
pared with learnings of 2.4g last
timet ■ Tax ' took - £335,000
(£338,000). . -TV^ ' '
• -Sales .ruse; from £42J56m. :to
£40-4Sm, withe the DK noedxllra-
tton inereasiaE by . £3J>lm .to
636.72m.:- .' / .
Trading /profits dived - "to
£433,000 (£L88m), comprising HK
£152,000 (£69^000) and overseas
£281,000 (£635,000).
Cover Plnsi- with Woolworth’s
increased commstment to DIY,
continued to perform well during
the period, the chgirmwii gays.
The trade tales market has been
subject to intense competition at
heme bat some progress has been
made in export markets. ■ i.-
The fedustcial diviekm hcJfiffcs
own in terms of maHw* {bare
in spite of severe competition.
SHt •comment
Earlier optimism gave way to. a
forecast of half time losses ' at
the end' of May. So tbe fun
extent of Maephsxwm’s downturn
was greeted in the market with
almost total equanimity. The
Thai continuing deprearin&inprice held steady at 39 p yester-
day having- already come back
from a high of S6p. Macpherson’s
basic problems are 'straight-
forward - enough — intense com-
petition, sagging volume . on
decorative paint and weak prices.
- Tiie group has just implemented
its first increase bn the decora-
tive side for IS months — a rise
of 7i‘pet cent for Cover Plus.
■Pricing on industrial coatings is
even mote upWlL The acquisi-
tion spree has lifted interest
costs by more than £300,000 and
capital gearing is up to 65 per
cent. The group. is budgeting for
sales of £L08m this year and
there will be a return to tbe
black in the second half.. But
some (Sty estimates of £l-8m pre-
tax for tbe year are asking a
very great deal of tbe closing six
months. Moreover the long term
commitment to Woolworth’s high
street shops (Macpherson does
not sell through B and Q) is a
question mark over the future’s
.growth prospects. A yield of 10 f
per cent is still talcing a fairly
rosy view.
Heron pushes ahead to £15.5
exchan*
/PRE-TAX PROFITS of the
■ private property -and vehicle dis-
tribution group Heron Corpora-
tion rose from £13.43in to £l&5m
in the year to March 31, 1982,
" on turnover of -£322m^ up from
■ last year’s <£302.69m.
Mr Gerald Ramson, chairman,
. says that as a result of available
management and
' resources, Heron is now in a
position where it is able to make
a substantial acquisition. '
The ratio of. interest-bearing
debt to shareholders’ funds had
reduced substantially in tbe past
' few years. At year end,
'into account cash balances
. £27m, the ratio , stood at 58 per
cent, giving much, room far
expansion.
On Monday, Heron annoupbed
that it had acquired a 'SLl.per
cent stake In TODS Group/ the
department store, women’s
fashion and meanswear retailor.
Mr Ronson says that following
the unsuccessful ~ attemp to
acquire Associated Communica-
tions 'Corporation at . *s
realistic price, Heron iris’
continuing M actively to look fdr'
further _ acquisitions.”
Interest payments for the year
totalled £&4Shn (£9. 62m) and
took £7.13m (£&05m).
credits - amounted to
(£160,000) ‘ and extraordinary
.credits . - contributed . £238m
(debt £L09m).
The groups profit before tax
Tsresaks down as foil owe: trading
;£8.14m ■ (£9.26m); p r op ert y
£0B4m f£2B8to); insurance
£5.48m (£5.1m); other activoti.es
£216,000 (£626,000); unallocated
group finance darges £5. 17m
(£4.fflm).
Mr Rcmsou says that share-
holders’ funds increasMl . by 40
~pst cent to £186m, lndxo&ig dome
£3&Sm arising from valuation on
completion of severe! property
development projects.
At March 31 1982, Heron had
total available financial resources,
either in cash or u nd rawn bank
lanes, to excess of £100m. The
company is wholly-owned by
Heron Interzietional.
kGB ^
1
R. W. Toolhin
well ahead;
pays 3p more
DESPITE A stowdown tor -the
second sdx months ft. W. ToofldH,
f urnitu re maker, managed to
push iq> JUs pretor praflte from
£117,000 to £248^00 for the year
to March 31 1982. Turnover rose
by £L14m to £A82m. -
First half proflai amounted to
£188,000 (£2U82 low) and a
reasonable tidiid qtterter was
anticipated. No prediction far
the full year was given,
Stated earnings for The 1981-82
-year emerged well ahead at
. 20.35p (2122p) and a finaft
^vidend <rf 3-5p. makes a' net
total trf 6.^>—a smgie payment
of 3^> w» paid tiie pnertioas
'year.
r Atthoogh trading .■• oondftiouB
. remain ifi£5ai)t the company is
c ontinuin g to trade profitably.
‘ However, the director* say it is
. probable feat profit* for the first
ihaB of the cur rent year wffl be
less than those of tbe ooiTee-
/ponding' period, " but not
1 marteriaHy so.“; • ..
Rexmore turns in £546,000
and sees further progress
TAXABLE PROFITS of £54*000
for the year to March 31, against
lasses Of EBOlflOO previously, are
reported by Rexmore, fabric
supplier ’ and ■ dtetributor. Turn-
over fell by SJB6m to £3L0 Ldl
The pretax figure iziohideB
tdgber associate’s ronbribution of
£89,000 (£41,000) and is after
reduced losses of £28,000
(£843,000) on dtecontinoed opera-
the post IS-mondfos and they fore-,
cast farther progress tins year. -
There was an fmprovmnent at
the trading level of £3364)00 arid
a £496,0 0 0 red u cti on in interest
charges arising largely from, the
stock reductions bn 1960S1 and
the sale of S. A. Driver in July
198L . . • <
■ Losses toomred last - year «t
the. draxoitinaed operations at
Blackburn have been eliminated,
the directors say. But the final
group's Habdlty was advised to
be minimal at afl material times.
Trading : losses and expenses
were -incurred dacing' tte- tix-
month receivership and the con- 1
stderation which will be received
on deferred, tenhs. for . the
business bias proved inadequate
to release Rexmore, and the
board has provided for tbe foil
lrabmty.
CCA pretax income for the
period was £288,000 (£L21m
loss). .
Laganvale on target with £0.29m
K<’l
TAXABLE PRtMTTS of Lagan-
vale Estate were on target at
£293,484 far the 12 months to
April 30 1982 and showed a
. considerable improvement over
. the £108,815 : .returned the
• previous year.
In February, announcing that
"Sturia Holdings had withdrawn
its bid for the company. Lagan-
vale directors forecast profits of
hot less than £280,000. Midyear
figures were £86,149 higher at
£124,023.
Stated earnings per lOp share
for the year 'moved ahead from
0.67p to L08p, pre-exceptional
items, but there, is again no
dividend. However, the directors
say that circumstances allowing,
they hope to bring the company
back to tbe dividend list diming
1982-83.
Turnover for tbe year under
review rose from £967.176 to
£1.8m~Mfce group’s activities are
principally related to properly
"investment, development and
dealing.
-The prate* surpins included
Interest received of £91,693,
against a charge of £132.620.
Tax- paid amounted to £134*526
(£52,113) and there was an
exceptional debit of £49,450
(nil). "Net .assets per share
totaHed 34p (30p).
The directors say that since
the beginning of the 1981-82 year
the company haa, under- fits new
management, engaged in further
disposals of- its secondary pro-
perties. The Mitre House office
and shop complex to Brighton
now represents » major propor-
tion of the company's assets.
Negotiations were completed
test- month for the surrender of
one of the . shop* -leases for
£L75,000-Hthe reart had been
fixed at £L300 per annum for
the. next 12 years. The directors
point-out that this shop has now
been re-let at £50.000 per -annum
for' 20 years with , five year re-
views. Tins transaction is not
reflected m the assets per share
at year end.-
It is the policy of the company
to pursue further transactions
that will similarly enhance tbe
capital value of Mitre House. .
At the end of the year under
review, Laganvale acquired
Reg enter eat- It also acquired
£3 .4m Of commercial properties
that were, held by Regetrtcrest
as trustee, and will have benefit
of rental income of -some. £90,000
as well sis imminent rent reviews
and lease surrenders.
Group rental income is now
running at £380,000 per annum,
which the directors intend to
further increase.
As a result of an introduction'
by its financial advisers Rhone
Trust (51 per cent owned by
Geneva-based Banque du Rhone
et de La Tamise SJL), Laganvale
successfully completed negotia-
tions -to invest approximately
30.5m in a 312.7m office develop-
ment in Michigan, U.S. The
director's policy Is that invest-
ments in the U-S. are carried
out: with substantial - U.S.
partners, who themselves in turn
become majority investors.
They intend to step up the
company's property dealings,
both in the U.S. and the UK,
and with the benefits of these
plans, Laganvale will develop a
high quality diversified portfolio
of- properties, showing both
revenue and capital appreciation
in the future. New investment!
opportunities will continue to be.
sought.
: Laganvale is proposing to
change its name to Regentorest
RESULTS AND ACCOUNTS IN BRIEF
IINGS $
d»^ n!
£0*
llPi
\f
REED rNTSt NATIONAL (pipBP, paper-
trnard, packaging, printing, publish ins.
wall coverings, bunding products) — -
Results for the S3 weeks W . April *
1262. reported June 8.. Shareholder*
funds including £4.1m prefewica eharo
capital, fSWm (£4SB.3m). Properties
and dent £391m
current euats • '£287.110 (£263m).
Incraase In ibort-tarm borrowinga
El0.4m (£21. 6m), Increwe In
tsmt deposlte. . £18. Bm (EJMm
decrease). . Futore capita] expenditure
f29m (C37.9P1), made up « to con-
tracted fof £14.1 m (£20.4m)-' end
authorised but not contracted W
C14.9m (ET7,3m). Meeting; The
Institute of Electrical Engineers, Sewoy
Piece, WC. August. 5. noon..
* : UAftDON mi GROUP (quanying.'
plant’ and crane hire, civil engineering)-
r*-Retuin lof the ywr: to March 31 1SB
and prospects reported July 2. Shere-
twldora’ funds £8.Sm (p^4m).
hssats £9>l5m (£B.42m). Not cyiYeet
Wan £14,000 (£48.000),
)»nk overdraft CUSrn (£83.000).
Meeting: Leicester, July 22, 11J0 am.
1 EDBRO (HOLDINGS) (engineer)—
Results for foe: year to March 31 isw..
end prospects reported May 28: Snero-
tioldere’ fund 0.08m (£7.Mm).
haecis fl3.12m (fS.24m). N« cuwent
•sects £5.3m . (£1.14m), indvding .• cauiUng bank
eacured ovettfrsft nil (£4.85m). - .ca.Bm . (£10.96t»v
Won In working capital £83*.«»
^M.93m). Meeting-’ ' Charing .cross
Hotrt. London. July 30. 10 [era.
OUNHIU HOLDINGS (wbactm)--
ftflEuhs for year to Men* 31 w
fsoortBd June 3. -Ordinary sherehowera
funds £32 42ra (Ea.28m): Net currant
hseete £38.08m (CtoWm): ShofMonn
deooslu arid- seeuritwe riB-W"'
YCi 1.68m). Bank overdraft* end «nori-
fam hums «-49m (EB.IIm). Fbred
pn«n «.59«n (£7.08 m). /!■««■*• ■
Wdriunp capital £K33m (£2.tem).
Meeting: Cat* Roj»l. W. Juty » noon.
.<«JMFORT..HOra3.; INTOtNATlWWl current;
-Result* tor 13^ reported;
pecta. May 8^ Pined eman ^
fE37.6m).
{£*.61 m).
lSd*e.^3rn‘ '"vWrreCROPT |MH«. bvMmil
(£1 0.07m) including bank overdrafts
and secured short-term loans £5. 15m
(£3. 68m). Stiareholdara' funda -£15.8*01
f£16.3l'm)... Mealing: Rainbow Suita,
99 Kensington High Street, W. August
10. 1030 am..
BRITISH BENZOL CARBONISING
(cake and anokaiees . (uef manufac-
turer) — Reautai tor year ended March
31 1S82 reptmad June 2. 'ShbrohoMece*
interest Cl^ftn (£715,000). fixed
suets G1A3in (tl.TOn). Net convnc
tiatWireos £17.000 (£904.0001. Net out-
flow of fundi Cl.Hlm (£2.82m o inflow).
Brirw Investments holds 24.65 par wk
of cap*wf, Ueering, N o mport Gkwnt.
. Jidy 2B, 2-90 P®- ■ . .
DUNDON1AN ftraperty dnetoipanenX
natural resouceea, flnanao) eondras)—
Results tor Thu yu»r » March 31 1S82
reported Mey 27- Sfta«hgkl«a' funds
£16.21ni (£UAm). R»d sswti EMro
(£7.a5ra). -Curror! aseets £18. 49m
C£12J6in); current Hafatfitlac EIIAhn
• -MeaBang: Institute at
Chartered Aecoontarrea m Engtand «ad
Wales, Mocrgew «w». EC. July 27..
11 am.
REDIftJSSION (wtovwnon rental,
oi«aronacs)— Reaufts far year to March
31 1982: reported June 26. . Sharo-
kotdere' fund* £lia^2bn (£10)JS3m).
Fixed eaeits CISI-Bro <£131 Stot).
Current meets £78 .48m (£S.1Qn) f . u-
btdencer end cash
Current ItobMOea
•£99.8Sm' (£106-9®m). indudlng- shore-
tom tosha and bank ow fd w fts £5. 73m
(£9,77m). Chairman, says group eriwr*
Hig .period of heavy- capwei arpond*-
tu«, .' doe* • not icwvsae diWcuIty • to
borrowing m&m needed, wrthom
undue Strain on fetfanoe ahett Mwt-
Ing:- InatUirte of Diraofore, SW, Jidy
28. 12.18 pm.
SCtfrCfrOS - flood, pneirBgtng.
snreneenng) nswft a tor yesr^ »
March 31 1S82 reoomd June 9 Toiai
eharohcWare* funds £7.«m (£8.3Un).
Rsed asets' ClO.BBm' (£7. 29m). N«
hsbMHtos £1*4,000 (£3.2*m
eeeetaV. ' Ref* v««Mfat»e 04 04m
(£1.5Bm). * Meeting: Gfesgow, July 26.
neon.
closures have entered additional
extraordinary . expenses of
£130,000 and it -te dear these are ;
tile Anal r-ny t”
The total dividend b nrised
from Ip to LOBp net,' with a
final of 0-525p, whQe i
per Hp date arts given » 2-46p
(lL69p losses).. Tax charge foil
from £285,000 to £107,000.
v ^ vrwt _ The directors say tint during
trans,' and interest of .'lis^OM ,® e S^srateiees eoocern-
(£L3te) utfl part: of the borrowings of a
m. ■ - ■ ' ’ '' former trade investment were
/ ; T pe m re^Hiib expect- me group called for sobetartiaitifm when a
to- obtain farther benefits .from receiver was appoi n ted. - The
the rationalisation programme of
supphoa, engm raring )— Hssufta for the
ysnr to March 31 1982 rsportad June
2. Sbaiehaktors* funda £22.4&n
(£31;38kn). Fixed asssts.T £11 Am
r£13^5m). Currant Hnb - £32.Sm
(£37.44m). htdudlhg . eWdai and ondrfc
in progress DS.SSm (ClflXfZm); currant
HaOiliiiaa £16.46ni (£23.47m), metoding
bank, owidnki £4. 48m [€9,74m).
Decrease in working ' ea p ia al £2.77lm
(£5. 66m). Chetnnen . 'says adrances
roads am aignlfium but Km is toms
way to go batons group mWbw j level
of pettfemenc* revised prior to 1980
downturn. Meeting: WUetow, Cheshire,
July. 26, noon.
NEW TOKYO INVESTMENT TRUST—
No inwrim dividend. Capital epprecia- *
bon remain* the vomputY's primary |
objective. 1*re-»x revenue E99B for
*bc months to June 30 1982 (£8.248
deficit for period from October 20 1990
to June 30 1981). Ta* £8,7l3Tfi,2141,
Deficit per ordinary sham 0.07p (0.1 p).
Nm asset value 108p (130Ap)' and
107.3p (128.1p) adjusted -for excreica
In fulf of rights attached to warrants.
CRESCENT . JAPAN INVESTMENT
TRUST — No dividend, capital apprecia-
tion remains company's. primary objec-
tive. . Pre-tax revenue for- six months
10 June 30 1982 £100,757 (£30240).
Tax £52,414 (£46.925). Earnings par
share 0 ,72p (0.64p). Nm esaet value
294, 9p (3S7.6p). Board uy* Japanese
nock markers relatively quiet as
impact of recession made ftssU fait.
Industrial and office automation stocks
continue to be emphasised in portfolio.
JOHNSON MATTHEY (onerous metal
rafin'mg, bsnlctng, chOmmaJ menufac-
ture) — Results tor yner ended March
31 1BB2 raportad June ‘ 17. Share-
hoidars' funds C3CG.4Sm (£206.57m).
Cunenc assets £1J9bn (£1.21 bn).
Current babWtics £1.26bn (Cl.OSbn)
including bank kmrw and ovenkafts
£91 63m (£SO. 95m). hwesttnonts
€2BJ8m . (£18. 07m). . Fixed assets
E9B.25m (£B7.08m). Bn* stocks
na.tem (£73 48m). Warinnp eepini
decreaeed E5 29m (£34. 9m increase)
Mooting, to Atoorewntiury ,K. July
29, 11.30 *m.
Bambers Stores
forecasts
midway loss
THE CHAIRMAN of Bombers
Stores told the annual meeting
that tbe policy of the directors
to reduce stock levels had been
accelerated and that excess
stocks held at the end of last
yew had. been significantly
reduced.
He warned, however, that this
policy would result in a loss at
the interim stage, but added
that, despite whqt was going to
be a very disappointing first half,
be believed the problems of the
post months were now behind.
- The meeting was told that the
new management had matters
firmly under control and had
laid the foundation for a total
recovery.
R. Kelvin
Watson
up 25%
to £0.46m
FOR THE year ended March 31
1982, R. Kelvin Watson, optician,
recorded a 25 per cent rise m
profit before tax to.: £456.633
against £365/193 last time, on
turnover up from £5.6m to
£6.47m.
The final dividend per lOp
ordinary share was 22p net (2p).
lifting the total to 3£p net
(3.3p).
Tax come to £189.631
(£188.720). leaving net profit at
£267,003 compared with £176,473
previously. Earnings per share
were stated higher at 7J55p
(4.83p).
Hie directors say the results
have been achieved in spite of
there having bees no real signs
of an end to the recession. The
company Is to ro»tntain its policy
of expansion, particularly in its
retail outlets, directors say.
In addition, the company has
had a successful year with the
gas permeable contact lens and
in wholesaling contact lens pro-
ducts. Directors say that they are
looking forward to more success
from a new extended wear con-
tact lens to be launched in the
autumn.
The current year has com-
menced satisfactorily, the direc-
tors note, but caution that in
common with the rest of the
profession, the company is still
experiencing some resistance
from the consumer to the
increase in health service optical
charges which came into -force
in April this year.
However. H has been the
company’s experience in the past
that such resistance is of a tem-
porary nature, the directors
stress.
OCA pre-tax profit works out to
£251,000 (£182,000).
London Trust is an investment trust with
holdings in a diversified range of companies
throughout the world, but predominantly in the
UK and USA. .
A substantial proportion erf the portfolio is
invested in smaller companies and venture
situations which, in the opinion of the Trust's
Directors, offer outstanding growth potential
Their activities range from microcomputers,
word processors and miniaturised TV cameras
for use in microsurgery to banking, aeroponic
agriculture, TV series tbr international
distribution and film.-
Our interests are more
interesting than most.
For information about London Trust's
progress to date and investment philosophy for
the future, please send the coupon for a copy
of our just published Annual Report.
IPNDON TRUST PLC
Fib: Tbe Secretary,
London Trust PIC,
44 Bloomsbury Square.
London WC1 A 2RA
Name,
I
I
I
I
I
I
I
I
J^latest Annual Report
Company-
Address
Please send me a copy of your
GftOUP RESULTS .
This Year Last Year
moo moo
Sales
122,254
127,093
Profit on Trading
4£26
MU
(Loss) Profit attributable to
Ordinary Stockholders
{Loss} Earnings per£l unit
Dividends per £1 unit
(3,261)
(8-ip)
2-Op
1.181
2-9p
2-Op
Extraordinary Items . .
Reduction In Ressrves -
(881)
fc538>
(2,416)
(5,780) .
RENOLD
INTERNATIONAL ENGINEERING
MANUFACTURE AND MARKETING
Stortamant by the Chairman Mr L J Tolley CBE .
The 52nd Annual Gonorat Mooting of
ftonoM PLC will be hekl on 29th July at Ranold House, Wyth enshawe, Manc h ester
INTRODUCTION
Resultsfor 1981/2 reflect the very low levels of
demand for mechanical engineering
products, particularly in die United Kingdom,
the rest ofWestam Europeand North America
—areas which, collectively have been a major
source of demand for Renold products in the
past This weakness in mechanical
engineering Is a feature of most economies
arid reflects both the general recession in
manufacturing activity and the high interest
rates.
The second half of the year showed some
improvement over theliret haif, not so much
because of any major upturn in demand but
rather because our cost base has been
progressively reduced to levels more
appropriate to the present low levels of
demand. Under the difficuitdrcumstances It is
gratifying that we were able to reduce UK
borrowings. Whilst overseas borrowings have
increased in sterling terms, a part of this
increase reflects the fail in the value of sterling
against other currencies, particularly tiie USA
dollar, at the end of the year.
We have decided to maintain the same
dividend as lastyear of 2-Op on each £1 unit of
Ordinary Stock against the background of
improved results in the latter part of the year.
RENOLD IN RECENT YEARS
The severe increases in the price of oil In the
early seventies coincided with and greatly
fostered a downturn from high levels of world
economic activity. The recession was
particularly notable in the decline of
manufacturing industry throughout the
Western world and was most obvious in tiie
UK. The late seventies, which included a
second oil shock and a determined effort to rid
economies of the blight of high inflation
presented major problems for Renold. We
restructured our manufacturing operations,
closing unwanted capacity and concentrating
new investment in activities with the greatest
potential, such as Hydraulics, Electronics,
other high value-added power transmission
activities. Pharmaceutical Equipment and.
selected overseas operations.
In mid-1980 demand levels fejl steeply, with
both Europe and the USA being badly
affected. The process of restructuring and
rationalisation had to be accelerated — more
factories were closed and the 1 activities of
others curtailed severely, the headquarters
building was sold and the whole structure of
the organisation streamlined for econoriiy.
Overall, our employment levels have been
reduced from some 15,000 in 1975 to. some
8/500 at present.
RENOLD TODAY AND IN THE FUTURE .
1981/2 saw a continuation of low demand
levels and high interest rates which together
with further redundancies and rationalisation
seriously eroded profits. But the streamlined
and more efficient organisation which
remains can be expected to give a better
financial performance provided that any
major economic shocks do not undermine
world confidence any further. Renold is
capitalising on its technical ability to
manufacture and market high quality power
transmission products for applications which
demand reliability in technically exacting
situations and where high performance and.
value for money are the overriding
considerations.
In both power transmissionand otherfiefds of
activity there have been many signs of
progress, including:
- a resurgence in demand, particularly
overseas, for automobile camshaft chain
based on the introduction of a new longer
life chain
- accelerating progress in hydraulic motors
helped specially by the Sperry Vickers
agreement to which I referred lastyear, and
with other such agreements being actively
pursued
- continuing growth in worldwide sales of
electronic speed controllers of new and
advanced Renold design ’
- success in our engineering contract
activities covering power transmission
packages and machine tools
- extension of our pharmaceutical equipment
activities to include capsule machinery to
be sold and made under a licence
agreement with Eli Lilly and a further
marketing agreement for packaging
equipment
- the introduction to the field of industrial
robots in association with a European
manufacturer
- extension of computerised systems which
will improve our customer service and
make better use of stocks.
Thus although much attention has had to be
directed towards adjusting our operations to
the lower levels of demand this has not been
allowed to divert effort from the future growth
of the Group. This requires maintenance of a
strong technical base in precision-engineered,
quality products, supplemented by new
products and new markets with growth
potential in areas associated with our existing
business.
THE ECONOMIC SCENE
There is very little firm evidence in the
Western economies of any early and
substantial recovery, despite the dear signs
that a much higher level of capitaFinvestment
is needed to raise productivity and embody
the recent advances in production technology.
There is, however, considerable evidence of
the growth of pent-up demand; thetrenslation
of this pent-up demand into actual orders is
inhibited by such factors as political
uncertainties, high and volatile interest rates
and low rates of return, high costs of public
sector supplies and services and the strength
of competition from the Far East The situation
tends to confirm the feet that in the West the
weal til -creating sectors, including mechanical
engineering, have been allowed to dedine so
far that they can no longer sustain tiie required
level of expenditure on goods and services. As
long as tiie necessity for an effective,
broadly-based manufacturing industry
continues to be ignored the likelihood of
substantial recovery must remain uncertain.
1 believe, however, that there could still be a
recovery in the near future if interest rates
were to fail substantially and in the longer
term by a determination on the part of
manufacturing Industry to invest in new
technology in those areas which at present are
being allowed to pass to other countries.
CHAIRMANSHIP
it is of course disappointing to me that a long
and fulfilling career in manufacturing industry
is coming to an end at a time when the
fortunes of Renoid and indeed those of
manufacturing industry as a whole are at a low
ebb. However, as far as Renold is concerned,
I am sure that the actions already taken will
pave the way for recovery. I therefore hand
over to Sir Campbell Adamson confident that
he and the many capable and determined
executives concerned will lead the Group to
the better times which lie ahead. My thanks go
to all Renold personnel for their unfailing
support over many years and my best wishes
for a successful future.
GROUP PROSPECTS
It is now likely that internationally destocking
has for the most part come to an end, and this
should help to stimulate demand for our
products. However the capital investment
hiatus remains a serious problem in many
countries and industries, now even in oil
exploration and production which has
sustained many engineering companies in
recent years.
it is not therefore expected that there will be
any significant improvement in demand in
1982/3 but the actions taken to cut costs and
interest charges should result in an improved
financial performance. We are constantly alert
to the need to review our operations in
response to fluctuating economic and trading
conditions and to take whatever further
actions are necessary to accelerate recovery.
We are now in a strong position to taks
immediate advantage of any upturn in
demand arising from an improvement in
economic conditions.
RENOLD PLC . MANCHESTER
28
ConpaBles and Markets
Help for
Indian
jute industry
By K. K. Sharma in New Delhi
.THE INDIAN Government has
decided to establish a Jute
Fund to help the jute industry
modernise its units, which are
now facing a. crisis because of
'Competition from synthetics
:and falling exports,
Mr Shivrap Patil, Minister of
: Commerce, told a parliamentary
committee that the Government
also planned to pass legislation
to revise the jute levy in order
to finance research and
development.
. In addition, the Government
proposed to intensify measures
already taken to stimulate
. demand for jute goods by con-
tinuing purchases by its own
agencies and by expanding the
. role of the Jute Corporation of
India for ensuring fair and re-
munerative prices for raw jute,
he added.
Mr Patil rejected the
industry's plea for a production
cut and do&re of some mills
for a period on account on the
present glut in jute products.
No wheat
imports expected
By K. K. Sharma
INDIA'S agriculture ministry
now feels that it will not be
necessary to make grain imports
this year in spite of the damage
to the wheat crop earlier this
year. This follows unexpectedly
large sales to the Government
by farmers so far.
Wheat procured by govern-
ment agencies for stock pur-
poses has been estimated at
more than 8m tonnes, which
is lm tonnes more than at the
same time last year when there
was 3 record harvest Procure-
ment could exceed 9m tonnes
bv the time the season ends
in. file next three weeks.
This means that the govern-
ment's buffer stock will have
readied about 15m tonnes, well
above the 12m tonnes consid-
ered necessary for a safe buffer
stock although the “ operational
stocks ’’ — those catering to the
public distribution system of
ration shops — will still be
insufficient until the rice crop
is harvested in the autumn.
Financial Times Wednesday July 7 1982
.
COMMODITIES AND AGRICULTURE
EEC to maintain
export pressure
BY CARRY KLINGER m BRUSSELS
THE EUROPEAN Commission
has made dear that it will con-
tinue to seek expanded export
outlets for the European Com-
munity's surplus agriculture
produce in spite of growing
protests from some of the
EEC's main trading partners
that its subsidies policy is both
unfair competition and dis-
rupting to world markets.
The Commission is also still
aiming to secure long-term
export contracts in spite of the
opposition of several member-
states, and would like to expand
sales to Eastern Europe, reject-
ing the European Parliament’s
call for rigid controls on trade
with the Soviet Union and its
Warsaw Pact allies.
Mr Poul Dalsager, the Com-
missioner responsible for agri-
culture. told EEC Agriculture
Ministers and other top officials,
who ended a two-day informal
meeting in Brussels yesterday,
that the Commission was seek-
ing a " more coherent strategy ”
to pursue its “ active ” export
policy, based on a wider range
of instruments than just the
export refund.
The widespread use of the
export refund — which is basics
ally a subsidy paid to make up
the difference between the
EEC’s guaranteed producer
prices and lower world com-
modity prices — is the main bone
of contention with the EEC’s
main competitors, and Mr
Dalsager said that it would be
preferable, in tha medium-term.
that the importance of tire
refund should “ gradually
diminish.”
He made dear, however, that
the export refund would remain
a “key mechanism” and that
overall policy would continue
to be directed towards expan-
sion.
While pointing out that the
EEC remained the world's
largest agricultural market
“ with a comparatively open
system and few restrictions on
private enterprise,’* he empha-
sised that “our main competi-
tors, such as the United States
and Australia, are becoming
increasingly aggressive in their
own export policies."
Mr Dalsager said ' that he
hoped that the “reservations”
of several member-states on
long-term contracts would be
lifted soon and called for the
greater coordination of export
credits.
Mr Dalsager admitted that
the Commission, was under con-
siderable pressure from Parlia-
ment to adopt sterner control
measures on exports to Eastern
Europe and did not rule out
“ some improvements ” in
export arrangements, “possibly
through greater coordination
with other suppliers.”
“We do fear, however," Mr
Dalsager said, “that some of
the suggestions made in the
Parliament's resolution . would
make our export policy more
rigid, less effective and more
expensive.”
Peru urges
copper sales
boycott
LIMA — Peru intends. to ask
other copper producing coun-
tries to join It in suspending
exports of the metal until
world prices improve, reports
AP-Dow Jones.
President Fernando.. Bcl-
aunde Terry says support for
the Peruvian proposal will
be sought at next week’s
meeting here of the .Inter-
governmental Council of
Copper Exporting Countries
(GTPEC).
Representatives from Chile.
Zaire, Zambia, Pern and
other countries which control
more than 70 per cent of
world copper production will
meet here on Monday ■ and
Tuesday.
President Belaunde and
other government leaders
have expressed growing con-
cern over -low world prices
for metals. Mining is Peru’s
largest industry, employing
60,000 people and generating
60 per cent of the country's
earnings... Peru produces
around 400,000 tonnes of
copper a year.
If Peru restricts its copper
sales, production would be
paralysed at import a nt mines,
inducting Toquepala and Cur-
jane in the southern part of
the country, Sr Belanude
said.
The mines are operated by
the Southern Peru Copper
Corporation, . which produces
67 per cent of Peru’s copper
and employs 10,000 workers.
MEAT TRADING
Alarums in meat marketing
Indonesia sees coffee surplus
BY RICHARD COWPSl IN JAKARTA
INDONESIA is likely to achieve
a record coffee crop of 5.4m
bags (324.000 tonnes) this year,
but the increase could hardly
have come at a less auspicious
time. Exports are down and
coffee stocks, currently running
at more than a quarter of the
country's total production,
could increase to over 40 per
cent of output by early next
year, according to western
commodity experts in the
Indonesian capital.
Indonesia— the world’s lar-
gest exporter of robusta coffee
and the fourth largest coffee
producer— has been badly hit
by a sharp reduction in its
coffee export quotas, and slack
demand on the world . .market
'for robusta coffee. Last year
(1981-2) Indonesia’s exports
fell around 17 per cent to
3.2m bags.
Few expect a big recovery
in overseas sales in 1982-3.
Traders and western com-
modity experts are forecasting
exports of 33m bags, still weH
down on 197930 and 198981,
unless there are serious crop
disasters in other coffee growing
countries.
The slack export outlook is
made doiAly painful by
fndone§ia’s_fast expanding out-
put In 197980 production was
288,000 tonnes. This year it is
expected to he around 324,000
tonnes, up around 5 per cent on
last year. Stocks are now run-
ning at about 90,000 tonnes and
Western experts say by March
next year they could well climb
as high as 140,000 tonnes, more
than 40 per cent of total pro-
duction.
BY JOHN CHERR1NGTON. AGRICULTURE CORRESPONDENT
the AGRICULTURAL, coopera-
tive movement has been
shocked this week with the
anouncement that North Devon
Meat at -Barnstaple, one of the
success stories of agricultural
marketing, has told its members
that it has been making havy
losses. It is continuing trading
but been forced to freeze debts
outstanding as at June 25. The
announcement has had reper-
cussions right through the mar-
keting chain.
One of the first effects may
have been a substantial drop in
the live market price of lambs
in the last two days of last
week. This was believed to have
been caused by a diversion of
lamb from deadweight selling
to the livestock markets includ-
ing those in the West of
England.
. Farmers have been very ner-
vous of deadweight selling
reecntiy after one or two
abattoir failures. Confidence
has been shaken everywhere
- and the diversion could well be
total instead of about 70 per
cent at present
The problems of North Devon
Meat have been common to all
the wholesale meat trade. Turn-
over in beef is well down and
marg ins have been squeezed
between hard selling by farmers
and the even harder buying by
the supermarket chains. These
do not yet control the majority
of the meat market, but every
private butcher's shop which
closes means one less buyer.
The supermarkets do not in
general buy from farmers or
markets, but from wholesalers.
One of the safety valves for
the wholesale, meat trade was
the export of sheepmeat to the
continent— 40,000 tonnes were
exported lari; year. But this
outlet has been effectively
closed for the lari few weeks
because of the workings of tbe
EEC’s sheepmeat regime.
Under tbe regime, the
British sheepmeat price is
supported by a deficiency pay-
ment which makes the market
price up to the guaranteed
price for the week in which
it -is sold. The guaranteed
price this week Is 221 pence a
kilo, and if the market* price is
150 pence (it coidd well be
lower), tbe deficiency payment
would be 70 pence.
TSiis' premium is applied as a
clawback on any exports of
sheepmeat to fellow members
of the EEC and has closed the
European markets, completely
to British sheepmeat.
To make matters even worse,
the devaluation of the French
franc has made the landing of
lamb In the Paris market
absolutely impossible- The
French market is in any case
very weak at the moment.
Meat traders have attacked
the regime in no uncertain
terms, but farmers can see
little wrong with it nor, when
he negotiated it, could tije
Minister of Agriculture, Mr
Peter Walker. He claimed that
the operation of the deficiency
payment would mean that the
housewife, a creature for whom
he has demonslraied scant
sympathy in general, would get
cheaper meat and she is
certainly able to buy lamb well
below the farmer's guaranteed
price.
It is very difficult to see how
any other scheme could have
succeeded in maintaining the
price ' to farmers without
resulting in massive interven-
tion buying. The French, on
past form, would certainly have
gone on' preventing the imports
of lamb when it Tboked as
though they could have under-
mined their own market. The
clawback, which applies to the
whole Community, stops any
backdoor imports into France.
Livestock auctioneers may be
rubbing their hands at the
Sugar price rally continues
BY OUR COMMODITIES STAFF
THE RALLY ia world sugar
values continued yesterday with
the London daily raws price
being fixed £3 higher at £116 a
tonne and the October position
on the London futures market
ending £2.475 up on the day at
£126.875 a tonne. The LDP has
now recovered £21 from the
three-year low reached last
month.
Dealers see the tecent rally
as a technical reaction to a re-
duction in supplies available for
ff&irby delivery following in-
creased physical demand — par-
ticularly from Japan and China.
In addition limited EEC re-
leases at the weekly export
tenders have encouraged the up-
ward trend.
The longer-term outlook re-
mains basically bearish, how-
ever, with recent news indicat-
ing that the supply surplus
overhanging the market is more
likely to grow than decline.
In New Delhi, the Sugar Mills
Association - - -has • estimated
India's sugar output iff) to June
15 in the 1981-82 season which
started last October at a record
8J7m tonnes, against 5.04m in
the same period last season.
Total, offtake until June lfi
was about 3.46m tonnes for
domestic • consumption and
210,000 tonnes for exports,
against 3.25m for internal con-
sumption and 60,000 tonnes for
exports 'in the corresponding
period last year.
ISMA said factory stocks on
June 15 were about 5.27m
tonnes against 2.32m
In Bangkok, meanwhile, the
Thai Board of Trade estimated
that 30.11m tonnes of sugar
cane were produced during the
1981-82 season (November to
May) which could be milled
into 2.67m tonnes of sugar.
The average yield of sugar
dur ing the milling season just
ended was 88.67 kilos per
tonne of cane, lower than the
yield of 90 kilns fixed by the
government, BOT said.
Thailand produced 18.6m
tonnes of cane which yielded
1.6m tonnes of sugar during
the previous season.
• The 1982 Australian sugar
cane crush has started well with
record tonnages being crushed
in some areas and many mills
reporting good sugar content,
the Australian Sugar Producers
Association (ASPA) said.
Farmland prices
steady
By-Terry Povey
AGRICULTURAL land prices
In England for (he three
months up to the end of Slay
averaged £4,409 per hectare, 4
according to the latest figures 1
from the Ministry of Agricul-
ture. This was £51 per
hectare dp on the previous
month's figures.
The price index (1971=
100) was unchanged, however,
at 213, while the weighted
average price remained at
£4.136.
The provisional sales total
for the three months ending
May was Just over 6,200
hectares, less than half the
figure for the three months
ending Jnne 1981 and Just
over half the figure for the
same period In 1980.
prospect of conducting more of
Che sales of fatstock, but their
position Is noxic too secure. Ii
is true their throughput is
increasing. But one oE their
attractions to farmers is that
they clahm to pay on the day of
sale. On the other hand, they
are being asked increasingly io
give buyers credit. One told mo
that a large and soundly based «
customer had demanded three
weeks’ credit as a price for
attending his auctions.
Then there is the possibility
of a buver's failure which has
to be insured against. Not all
buyers are credit-worths’, -so
premiums can be very large, if
insurance can be secured at all.
It is possible that by the time
the credit risks are insured and
interest paid there is tittle profit 1
left for the auctioneers.
North Devon Meat has been a
dynamic. even aggressive
organisation, particularly in the
export trade. It may have over-
traded to * dangerous extent, «
but it is almost certain that- it
won’t be the last company to
confess to difficulties In the
present state of the meat
market To make matters worse,
the consumption of red meat,
except for pork and poultry ,- : is •
slowly declining.
LONDON OIL
SPOT PRICES
- j (Change
I Latest 1+ or —
CRUDE OIL— FOB (Spar barrel)
Arabian Light. _.!31,70-32.
Iranian Light..... [30.80-31,
Arabian Heavy J29.30-29.
North Sea(Fortle»..S3.GO-33.
AfrtcaniBonny U‘ht)34jZS-55.
PRODUCTS— North Wait Europe
CIF il per tonne)
1.5
GAS OIL FUTURES
Weaker physical a were ahe main
factor behind a continual fa4fl. reports
Premier Man.
Premium gasoline.. .[343 -346
Can all.. 212.381 i -
Heavy fuel oil.. .|l65-173 [-0.25
— Month
YesVday^s
close
-Kor
Business
Done
July-——-
8 U.S.
per tonne;
278.50
-8JM
278.50-711 M
281-50
-2,25,283.00-81^0
Sept.
282.50.
-ajo'2B«Jlfr«2JO
Oct.
286.50
-2JBa8LD0-M^n
Nov,.
288.00
— 2. M |28B. 50-88 J6
Dec —
289.00
-2.75,288.76 ^9 J»
291,50
—3.00
—
Feb...„
293.50
-ljm
—
March
296.00 |+0.!i(]|
—
GOLD
Gold fell 84} to $310811 in the
London bullion market yesterday.
Tbe metal opened at 8312-313,
and was fixed at S313.10 in the
morning, and $311.00 in the after-
noon. It touched a peak of
S313L-314, and a low of 83108311
at the dose.
In Paris tbe 12$ kilo gold bar
was fixed at FFr 68.800 per kilo
($310.44 per ounce) in the after-
noon, compared with FFr 68,800
18310.75) in the morning, and
FFr 69,000 (S312.91) Monday
afternoon.
In Frankfurt the 12} kilo gold
bar was fixed at DM 25,120 per
kilo (S314.9S per ounce), against
GOLD MARKETS
«•«*>
+ or
Business
Done
£ per troy
ounce
August-... 180.B5-fl.BO
-2.450
1B3JB0.ro
October... 184JMJB!-2.a5apB6JB
Novembor 186.00-6.48-1.850 —
December! 187 .80-8.00 -2JS50 —
January... .1169. 30-90.0-1^001 —
Turnover: 486 (109) lots of 100 troy
ounces.
July 6
July 6
Close [1310-311
Opening- [S312-313
Morning fixing.... 1 83 13. 10
Afternoon fixing.! S3 11.00
Gold Bullion (fine ounce)
|8314S*-318J*
S315-316
8315.60
(£180-180 is)
(£ 180 i s .iai)
(£131,245)
(£180.290}
S31&26
(£18l<t-18S)
(£18112-182)
(£181.897)
(£181.763)
Gold Coins July 6
Krugmd S3 18 4-3 19 (C184V1B5)
is Krug S164-166 - i£96-95J»)
u Krug HB3l;-34ls l £48 Is -491
V10 Krug 634-35 l£19V20i
Mapleleaf S318ij-3igi* (£104V185l<)
New Sov 67312-74 i£42U-43j
King Sov
Victoria Sov
French £Os
50 phi Max.
100 Cor. Aust
620 Eagles
Commodity
Analysis
Limited
COMMODITY
BROKERS
Specialists in
Commodity and Currency
Discretionary Accounts
Minimum account size
£25,000
Contact
Mark King or Jeremy Metcalfe
Commodity Analysis Limited
37/39 St Andrews Hill
London. EC4
Tel: 01-236 5211
THE
mix
HDRMULA.
A Radical Approach to
Cc8omx>d^Im?esttnex^
LvsH Investment Management
offers to substantial private
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entry into the lucrative wodd of
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For a fixe copy of the ex-
planatory booklet: The Lyall
Formula:, a radical approach to
Commodity Investment; 1 ’ please
write to:
House,
77a High Street, Esher,
Surrey KT109QA.
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BRITISH COMMODITY MARKET
BASE METALS SILVER
BASE-METAL PRICES gave ground
on the London Mats I Exchange but
closed wall above tha day's lowest
levels reflecting hopes of easier U.S.
Interest rates. COPPER dipped to £794
but rallied to dose at £801.5 while
LEAD was finally £328, after £322.0
and ZINC £414.5 after 6410.5. TIN
closed at £8.750. after £8^00 with .the
market rallying late an U.S. physical
interest. ALUMINIUM traded quietly
while NICKEL ended the day at £2.970.
Silver was fixed 4.1p an ounce lower
for spot delhmy In the London bullion
•market yesterday- « 338 Ap.— U.S. cent
equivalents of the fixing levels were:
•pot 686.00c, down 10.6c; three-month
008.2c. down ltd a Lx -month 629.8c.
down 11.4c; and 12-month 675.6c. dawn
11 .3c. The metal opened at 339-342p
(586-Saoc) and dosed 33S-339p (579-
683c).
Turnover; 68* (680) lots of 100
tonnes.
DM 25,180 ($31652) previously,
and closed at $310i-311, compared
with $315-315).
In Luxembourg the 12) kilo
bar was fixed at the equivalent
of $313.70, against $315.50.
LONDON FUTURES
Cash- —
3 nrrthi
Settlemt
Cathodes
Cash
3 months
Settlemt
UJS. Prod.
e.m.
+ or
p.m.
+ or
Off 1 dal
—
UnofflettI
-t
£
£
£
£
777J»-8
-5
776-7
-0
799-.B
-4Ji
797-8
-5.75
778
-5
—
—
765A-B
-4J6
763-5
-7&
787 -J
-5
793-.fi
r-7 J6
766
— 4J
—
r68-70-7B
.....
SILVER
per
troy oz.
Bullion
fixing
price
+ or
LM.E.
p.m.
Unoffio’i
+or
Spot
3 months.'
6 month*.
12 months
339.80p
350. 00 p
359.60p
381.10p
-4.10
-4J0
EiiS
330.6p
340 .2 Sp-
-15.8
-14J
Amalgamated Metal Trading reported
that in the morn ing cash Higher Grade
traded at £779.50. 79.00, 78.00. three
months £798.00. 98.50. 99.00, 900.00.
799.50, 99.00. Cathodes, cash £768 .00.
65.50, 66.00, three months £787.00.
Kerb: Higher Grade; Three months
£798.50. 98.00, 97.5a 98.00. Afternoon:
Higher Grade, three months £795.50,
96.00, 95.00, 98. CO. 97.00, 98.50. 97.00.
98.00. 97.00. 97.50. Kerb; Higher Grade:
Three month* £797.00. 98.00, 99.00,
800.00, 801.00. B00.50. 800.00. 801.00.
802.00. 801.50. Turnover 28,975 tonnes.
TIN
a.m. ;+or i pjn.
Official < - Unofficial:
High Grade £ I £ £
Cash-.....' 6826-5 1*27.6, 6610-90
3 months; 8726-38 ,+M i 6740-30
Settlemt 6636 ,+8S —
Standard! <
Cash 6620-5 S+27JB 6610-20
S months!fi725-30 r+30 ; 6735-46
Settlemt 6626 |+2B i —
Straits EJ:S20.1Q , — | —
NewYork 1 — '■ . — ■
■for
-t
£
ts
-SB
-an
COCOA
Yesterday*!
Close
1+ or
Business
£ per tonne)
896-99
+2.0
901-895
934-36
Dk 1to .
.....
975-76
1012-14
+ 6.5
979-69
1033-35
July .
1063-64
+ 4.0
1064
Sept--
....
1074-76
+4.5
1073-71
Sales: 829 (810) lots of 10 tonnes.
ICCO— Daily price for July 6: 74.13
(73.84). Indicator price lor July 7:
Tin— Morning: Standard, cash £8,605,
16, three months £6.700, 30. 20, 25.
Kerb: Standard, Three months £5.730.
Afternoon: Standard, cash £8.620, three
months EB.730. 40, 35. Kerb: Standard:
Three months £8.750. Turnover 2,480
tonnes.
882-83 (£471 2 -48)
888-83 (£47 1; -481
867*4-78 i£3S U-45U)
837914-3813 i£220 221»
S50Z-304J (£175j-176£)
6375-383 <£217i-222j)
LEAD |
ajn.
Official
|+ Or
Unoffiolal|
+ or
-t
1
£
i e 1
' £ !
£
Cash 1
3 15-^0 r-4JK ,3 1 1.58.5 1
-B
3 months
326-.S
*”5
325^5
-8.Z6
Settlemt
315.5
1 — 4.51
—
U.S- Spot;
„ —
“25-8
^ —
Lead — Morning: Three months
£328.00. 26.50. 27.00. 28.50. Kerb: Three
months £326.00. 25.50, 25.00. After-
noon: Three months £323.00, 22.50,
23.00, 23.50. Kerb: Three months
£324.50. 25.00. 28.00, 27.00. 28.00.
29.00. 30.00, 28.00, 26.00. Turnover
36,725 tonnes.
COFFEE
Year day s
Close
+ or
Business
Done
July
1234-40
+ HJk
1244-28
Nov
JonuoLy —
1030413
1000-02
974-81
+ 10J)
+ BJ)
1183-05
1039-23
1008-96
Mey>. — .
B45-51
+6.0
+ 0.0
96fr47
945
jaBL-m-T.Tr:
935-4 1
i e.m. i-Forj pZnu +or
ZINC I Official — f Unofficial l — t GRAINS
Seles: 2.5S3 (3,434) lots of 5 tonnes.
ICO Indicator prices for July 7i
U.S. ' cents -per pound: Comp daily
1979 1 18.74 (120.88); 15-dey average
120.35 (120.54).
£ £ 1 £ i £
Cosh 409-10 -M 408 9 - 2.5
3 months 414.5-5 -1.76 412.6-5.5—4.5
S' men t ... 410 — , .....
Prlmwts _ — 35-7.fi
Zinc — Morning: Three months
£414.00, 13.00, 13.50, 14JJ0. 13.50.
15.00. 14.50. Kerb: Three months
£414.00. 13.00. 12.00. Afternoon: Three
months £411.00. 10.50. 11.00, 11.50.
11.00. 12.00. 13.00. Kerb: Three months
£414.00. 15.00, 16.00, 17.00. 16.0Q,
15.00. 14.00. Turnover: 9^50 tonnes.
Tha market opened unchanged but
old crop wheat made quick gains.
New crop wheat continued to make
gains tram shipper and commercial
buying, while barley traded quietly
within e narrow range, Acli reports.
WHEAT
BARLEY
Aluminm
ajn.
Offldel
■for
p.m.
Unoffiirial
+ -T
Spot- —
3 months
£
540-1
£
-JB
£
B40.5-l.fi
£
+ 1
559-60
l-UR
669^-60
Mirth
Yasto rtTysl +or Yaet’rd'y*
dose ) — j close
+ar
July-,
121.00
l
+ 1JM| -
ttept.
110.05
+OJO| 104.70
-0J5
NwJ
113.65
+OJ0| 108.35
Jsut_.
117.45
+ 0JS| 111.83
+ 0.DB
Btar-
120,70
+0.36] 116.10
+ 0A5
M9h.
124JB0
+05| 11835
+O.D6
Aluminium — Morning: Three months
£558.00. 58 50. 59.00. Keifa: Three
months £559.50. Afternoon: Three
months £560.00, 59.00. 56.50, 60.00.
Kerb: Three months £560,00, Turnover
8,400 tonnes.
NICKEL ; a.m. + or p.m. + or
i Official • — (Unofficial, —I
i 1 I 1
Spot 1 2957-90 ' + 15 12000-30001 + 10
3 monthsl 2955-60 +.3 2978-80 j + 15
1 I 1
* Cents per pound. $ MS per kilo,
t On previous unofficial dose.
Nickel — Morning: Kerb: Three months
£2,955. 50. Afternon: Three months
£2,970. Kerb: Three months £2,970.
Turonver: 1,170 tonnes.
Business done— Whose jpjy 121.25.
12040. Sept 110.06-109.85. Nov 113.65-
ir U7‘«£ 1n7 - 20 - Mer 120.70-
12055, May T24 JO-123.95. Seles: 508
lots of 100 tonnes. Barley: Sept 1C4.80-
104.70. Nov 108.40-108.35. Jan 11130-
111.75. Mar 115.05 only. May 118. K-
118.X. Sales: X lots of 100 tonnes.
HGCA— Location an ex-term apol
prices. Feed barley; g. 10.30,
W. Mids 102.60. N. West 102.90. Thp
UK Monetary Coefficient lor the week
beginning Monday July 15 (based on
HGCA nictitations using five days ex-
change rates) Is expected 10 remain
unchanged.
LONDON GRAINS — U.S. Derfc
Northern Spring No. 1 14 per cent
Aug 111.80, Sept 110,25, Oct 111.50
transhipment East Coast sellers.
English Feed fob Sept 113.25. Oci/Dse
117.5a Jen/March 123 East Coast
aellera. Make; French July 136 tran-
shipmsnt South Coeat seller. South
African Whits/Yellow July/Aug 86J00
seller. Barter- English Feed fob Aug
104.75 South Coast; Oct/ Dec 112 East
Coast tellers. Rest unquoted.
RUBBER
No. 1
ftS-S.
YestVyi Previous
close dose
Busina*
Done
Aug
*opt
Oet-Dec
(ME— Turnover 188 (89) lots of
10,000 Qzs, Mamina: cash 340.0; three
months 351.0. 50.6. 60.0. 49.5. 439.
49.5. Kertj: three months 348.5. 48.0.
47.5. 48.0. 470. 48.2. 48.0. Afternoon:
three months 347.0. 42.0, 41-0. 40.5.
40.0. Kerb: three months 340 J, 41.0,
413, 42.5, 43.0.
COCOA
Futures traded sluggishingly within
e narrow range. Actuals business
remained scarce with bath producers
and consumers awaiting fresh news,
reports Gill and Duffus.
Jan -Marl NL8&-&G.ID
Apl-Jnol
48.1IM9.ro ! b0.49-60.7D{ —
fi8JIWfl.iro 61.T0-61.40j —
6Z.fifr5a.40
B7 JO-67 JO
Jly-Septi 00.40-80 JO
OctjW 62.20-85 .80
J'n-Mch 65A0-95.B0
ApWne | 67,68-8680
COFFEE
Trade buying In thin conditions en-
couraged «w*y gains, reporta D rex el
Burnham Lambert. Values continued
to advance u nail a lower Now York
opening prompted commission house
staling.
125J0
D.lfil 127 JO
1—0.80! 18238
1S6JW-3SJ
WSJ»-87.4|— 1-Ml
Sslee; GO (28) lots of 100 tonnes.
SOYABEAN OIL — The market opened
unchanged In quiet trading end
remained steady an mixed buying.
Closing prices end business done
(U.S. S par tonne): Aug 486.00. 493.50,
untraded: Oct 4B3£0. 485.00, 493.50-
483J30: Dec 488.00. 487.00, 487.00:
Feb 433.50, 494.00, 483.60: April
501.00, 503.00, untraded: June 604.00,
520.00. untraded: Aug 506.00. 524JXL
untraded. Sales: 12 (40) lots of
25 tonnes.
SUGAR
No. 4 Yasterday|
Con- I close
tract
Previous
dose
Business
done
£ per tonne
Aug J 121.90-2 UW 1 ia.7D-18.76j 121.76-18 J6
nirojfr27jdl24JfrS4*o!
133.0frW.M 152JO-5S M
Oct
Jan 1
March
SSd
OctL-J
128J6-fi8JfiilS7jn-37^-1Saj)fr38JNI
141Jifr41J»il40Jlfr40Jfl -
144 AO-46 JBtT4fi.WM4.NH —
148.68
mjOrSMji
152 JQ
14flJfr4S.M
148Jfr£0J»{147Aa47 r 60r
" Seles: 4,518" (2^80) . ion of SO
tonnes. '
Tate and Lyle delivery price for
granulated baaie white sugar was
£405.90 (seme) a tonne for Kama
trade end £222.50 (£219.00) lor export.
international Sugar Agreement (U.S.
cents per pound) fob and stowed
Catibbaaji ports. Prices (or July 2 :
DaJy ftfice 7.5S (7-83): 15-dey average
886 (680).
LONDON DAILY PRICE — Raw sugar
£116.00 (£113.00) e tonne cH July- Aug
shipment. White sugar dally pries
£156.00 (£153J»).
WOOL FUTURES
LONDON NEW ZEALAND CROSS-
BRED5 — Close (in order buyer, setter,
business]. New Zeeland cents par kg.
Aug 389. 375. 374-370, Oct 390, 383,
391-390: Doc 399. 402, 400-398; Jan
433, 404. 400-401; Mar 412. 416, 413-
411; May 423, 420, 434; Aug 435. 437,
43S: Oct 437, 442, nil; Dec 440. 444.
nil: Jan 440. 444. nil. Sales: 68..
SYDNEY GREASY WOOL — CJoae (in
order buyer, seder, business].
Australian cents per kg. July 540.0,
5*2-0. 543.0-534.0: Oct 815:0, B18.Q.
515.0-514.0: Dae 517.5, 518A 519.0-
517.0; Mar 524.0, 525.0, untraded; May
626 D, S28.0, untraded; July 537,(1
639.0, untraded; Qtt 531 A 536.0. un-
irsdBd; Dm 538* 643.0, untraded.
Setae; 88,
PRICE CHANGES
In tonnes unfee otherwise stated.
The London physical market opened
about unchanged. aamcned IrMe
Interest throughout he day, end dosed
uncecdn. Lewis and Fes recorded a
July fob price for No 1 RSS kt Kiata
Lumpur of 203.25 (198 0) can as ■ kg
and SMR 20 ITS JO (173j5).
6fi.6frMJOiW.Bfr62.10
66Jfl-66.U!fi6Jfr64Jfl
68J0-6S.U G7.flfr67.6fl
SO JO-SI JM 30-Ofl
Bfi.Bfrflfi.89 —
B6.Bfrtt.nlB6J8-86.4fl
BS.M-88.38j -
Metals
Aluminium
FreeMkt**.-.
Copper—
Cash h grade-.
imths^.
Cash Cathode.,
4 mths
Gold troy oz._
L« ad Cash
3 mths..........
Nickel
Free mkt..._.
£8101810
898flr985r-10
Sales: 283 (88) toss of 15 Sonnes,
nil (same) lota of 6 tonnes.
Physical dosing paces (buyers)
wire: Spat 48 SOp (49.00 p); Aug Bl^Og
f32.0C*>); Sept SlJSQp (622p).
SOYABEAN MEAL
The market continued to move
higher as renewed buying interest for
tha 1982 accounts found only scattered
soiling scale -up. reports C. Cxacnikow.
The market opened around unchanged
and drifted In thin conditions, reports
T. G. Roddick. Prices remained in
narrow ranges with lack of any fresh
nsws.
Ptatin’mtr o
Freemkt £154.43
Gutekaflvert J *360/370
SI Ivor troy oz.. 339.80?
3 mthe — -‘3KUXJ/>
Tin Cash [£8516
3 mtlUL_._..7S6740
TungstsnCU tbj|109.48
WetfrmSMIflbs
Zina Casfu.
* mths
Producers. ...
[S332.5
l— 2-36(6260.5
—INDICES—
FINANCIAL IMS
July 5
July 2
M'th ago
Y’arago
333.70
234A1
2S0J30
264454
REUTERS
July 6
July 5 |
M'th agojY'arago
1580.4
1BBOM i
15i7.fi | 1786.4
MOODY’S
July 2'
July 1
M^th ago
Y'ar ago
1000^
998.8
906.6
1186.6
(December 31 1831 - 100)
DOW JONES
Dow
Jones
July
2
July
Month 1
ago |
Year
ago
8pot 1123.03
Futr’s 1123.09
122.48
123,78
123.331
123,681
—
(Base: December 31 1374 — 100)
COTTON
' UVEBFOOL— No spot and ttilpansnt
bwneu ms retarded. Operators
wart uimBhng to trade end the per-
wemrvt rise (n prtoas. due an tha pro-
bable crop failure in Texas, was an
mportanj aspect. Freeh fadings wore
ran, sod demand was petahv.
POTATOES
LONDON POTATO FUTURES— Tire
marker was nervous, opening lower but
raoovedng during the afternoon, reports
Coley end Harper. Closing prices:
2 +1-» (high 58.20. low
BMO); 81-30. +0.80 (high 82.00.
fmv 60.00); Aprid . 68.80, +0.80 (high
££ ; ‘£*!L 67 ; 00 1 ; 71M ’ +0-60
(dWt 77.00, taw 7MQ): Nov 6&5D,
unhanged (83.00 otayf. Turnover:
90S (232) Iota Of 40 tonnes.
dr
HIDES — Birmingham r - prices were
TrUfe changed. Second dears. Ox: 31-
3&6. kg, 66^9 ■ kg (06. 3p); 26-305 kg.
AMERICAN MARKETS
j£81X8T6
•816/846
£776.6 -6 UB753.5
*797.5 -5.7WE77fl.75
*764 -7.5 £748
£786 -7.« £770.78
*310.8 —4.70 ffifiO.376
8518 —8 8885.5
£32335 — 8J5&3043B
JB4080 L^....j£3BZa
232r262cC.l_.23S/266o
— 3.8 £188^8
*366/576
(—4.1 O39^0p
.5 l360J2Bp
j— 25 j£|552
|*lll!68
iinniB 5110113
1*408.8 —2.5 £398JS
1*413 -4.6 £398.88
5800 *880/800
Oils
Coconut (Phil) 54B0v
Groundnut— #S65v
Linseed Crude t
Palm Malay en 1*442.5
Beads
Copra Ph lip *385
Soyabean (U *851.8
Grains
Bari ay Fat. Sep £104,70
Matte £136.00
Wheat FubSep £110.08
NoJHerdWIrrq , t
Other
commodities
Coooa Shlp'f £965 +6 £918
Future Sept £934 JB 45 £S17JS
Coffee Ft 1 Sept £111 1.5 +fl £1154 .6
Cotton AJndex 78^2 Bo 75.65c
Gas Oil Aug— — *281.6 — 8J5 SZ92.75
Rubber (Wlo)„ 48JJp -0.5 51p
Sugar (Raw)—. £116v +3 £103
WoolfpsBfs KL 398p Mlo |387pkJlo
* Unquoted, x Aug-Sept. u-June-Juiy.
v July-Aug. wAug. t Per 76 ib flask.
* Ghana cocoa, n Nominal.
NEW YORK. July 8
TTHi LIVESTOCK MARKETS ware
sharply lower on anticipated seasonal
product weakness. Grains and soya>
beans were under heavy pressure due
“.Producer hedging and trade setting
following weather improvement. Sugar
pnees ralhsd on reports of further
damage to the Soviet crop. Coffee
dec! ned aharpiy aa coo! weather failed
.to develop in Brazil. Precious metals
«na copper declined aharpiy on
arbitrage selling, reported Hainold.
. Copper— July 59.00 (59.10), Aug
ra.30 (sa-SO). Sapt 60.0B-60.15. Dec
62.40-62.65. Jan 63.30, March 6S.15,
May 66.46. July 67.96, Sept 68.45,
Dec 71.70. Jan 72.45. March 73.95, May
75.46.
Potatoes (round whites)— Nov 68.9-
67.0 (97 J). March 7LZ (7 7.3), April
67.2- 8? J. Sales: 62.
TSlhrer — July 563^ (589.5). Aug
587.5 (ra4.0). Sept 572.0577.0. Dec
595.0-800.0, Jan 8058. March 618.0.
May 638.7. July 652.1. Sapt 087.5. Dae
680.7. Jan 638.4, Merch 713.8, May
744.0. Kandy and Harman buihon spon
578.00 (594.00).
Sugar— No. 11: Sapt 845-8.47 (8 .24).
Oct 8.56-8.82 (8.37), Jan 8.80-9,00,
March 9.56-939. May 9.80-9.83. July
10.02- 10.03. Sept 10.20-10.25. Oct 10.35.
Salsa: 6.358.
Tin— 531 .0Q-536.00 (539.00545.00).
CHICAGO, July 6
Lard— Chicago loose 21.00 (same),
live Cattle — Aug 63.35-63.20 (63.22).
Oct 80.02-58.97 (60.65). Dec 60.8S-30.90.
Feb 60.45-60.65, April 60.40-60JS, June
61^0-81.65.
Lhre Hogs — July 60.05-60^0 (60JJ2).
Aug 57.80-07.85 (58.60), Oct 55.20-
54.85. Dec K.10-55J0, Feb 53.9053.70,
April BD.OO. June 51.40. July 51.10,
Aug 49.10.
ttIMaize— July 2G0V2G1 (264*.). Sept
262V262 (264^). Dec 263V264. March
277V 2771,. May 28SV2851.. July 291’,.
Pork Sollies— July 76.55-76.45 (78.12).
Aug 73.57 (75.57). Fab 72.10. March
72.15. May 70.50, July 71.00, Aug
70.40.
tSoyabaens— Juiy 6031t-6031i (607H).
Aug BOP, (6111,). Sept 6064. Nov
610-611. Jan 624V6244. March 64!.
May 654V July 6654-
|l Soyabean Meal— July 175.6-175.9
(177.3). Aug 175.9-176.2 (177.6). Sept
176.5-175.7, Oct 177.0. Dec 181 .a Jan
183.5. Mar 188.1, May 193.0-193.5. July
197.0-188.0.
Soyabean Oil— July 18.23-18.21
(18.39). Aug 16.34-18.35 (1854). Sept
18.50, Oct 18. 66, Dec 19.00-18.98. Jan
19.21-18.23. Mar 19.56-19.58. May
19.75-19.85. Juiy 19.90-20.00.
tWtioo* — Jitty 339>, (350). Sapt 352-
351 (382), Dec 372-3714. Mar 384*,-
3944. May 3884, July 3834.
WINNIPEG, July 6.
SBarioy — July 122.6 (132.8), Oct
120.7 (121.6), Dec 12.7, Mar 125.8, May
127.5.
•Gokl— July 309.1 (312.5), Aug 311.2-
311.8 (315.0). Sept 315.1. Oct 318.5
319.0, Dec 325.5-326.3. Fab 3333-
334.0, April 341.0, June 438.0. Aug
356.5. Oct 384.4. Dec 372.4. Fab 3805.
April 389.0.
All cents per pound ax-warahouss,
unless otherwise stand. * S per troy
ounce. 9 Cents per troy ounce,
rt Cents per 56-lb bushel. « Cents
per 60-lb bushel. I] S Par short ton
n °00 Ib). $ SCan. per metric Ion
5§S par 1,000 sq ft. t Cents per
dozen. It S per metric ton.
EUROPEAN MARKETS
ROTTERDAM. July 6.
Whaat— (U.S. S per tonne): U.S. No
Two Red Winter July 151. U.S. No
Three Amber Dunen Juiy 173-50. Aug
176, Sept 179, Dot 183. Nov 186. U.S.
No Tviro Northern Spring 14 per cent
Jury 177.50, Aug 774.50, Sepc 17S,
Oct 177, Nov 179.60. Canadian
Western Red Spring afloat 183, Sect
198. Oct 201. Nov 206.
Malm— (U.S. $ per tonne): U.S. No
Three Yellow *pOt 124.50, afloat 123.
July 121.75, Aug 122.50, Sept 122.50,
Oot/Onc 121.60. Jan/Mor 130 seilara.
Soyebe ena (U.S. Spar tonne); U.S.
Two Yatfow GuHporta afloat 343.50,
July 245.50. Aug 248.50. Sept 247.75,
Oct 343, Nov 243. Dec 248, Jen 2S4,
Feb 358. Mar 262. April 385 « filers.
Soyameal — (U.S. S per tonne):
44 per cent afloat 203 traded: afloat
304, July 212. Aug 214. Sept 215 50.
Oct 216, Nov/Mar 224 seders. Parian
Brazil afloat 215, July 215, Aug 219.
Sept 222. CUt 228, Nov/Mar 343 aellera.
PARIS, July 8-
Cocoa — (FFr per 100 kilos): • July
1020-1060. Sept 1107-1113. Dec H50-
1164. Merch 119S-120S. May 1240-1250.
July 1280-1295, Sept 1310-1320. Silas
at cell: nil.
Sugar — (FFr per tonna): Aug 1875-
1878, On 1740-1745, Nov 1730- 040.
Dec 1680-1685. March 1750-1755, Msy
1780-1800, July 1815-1830, Aug 188-
1840. Sales et call: 2.
57-6p ■ kg p7.Vp) ; 22-25.5 kg. 62. 2p
a fcg (81.0). Uoht cows: 25.5 kg.
62.6c a kg (62.1).
MEAT/FISH
SMITHFIBXf— Pence. per pound. Beef:
9t»teii WMed eMes 78.0 to 84.0: Uiiter
i+'d quarters SB.3 to 39.7, forequarters
69.5 tq 61.0. Veef: Dutch hinds end
ends 121.5 to 126.5. Lamb: English
wnari 70.7 to 75J, medium 63.0 kj
320. heavy 64.0 to 68.0: Vmports— Namr
Zealand PL 62^ lo 63.7, PM 61^ to
82.5. PX 53.3 to 80.3, YL 61.0 to 62.0.
Pot*: English, under 100 Ib 38.0 to
84.0. 100-120 Ib 43.0 n 525. 120-180 Ib
42.0 «o 50.1. .
— No. 7 —
MEAT COMMISSION— Average Fat-
stock prices ac reprasantaeve markets.
GB— twtie 101.41q9 par kg Iw (+0.46).
GB— Sheep 148.48p par kg eat dew
J . J®^)- GB — Wga 74.48p par kg Iw
(+1.47)-. .
■ *
, GR IMSBY FISH— Supply good,
dmund good. Mess aa whip't aide
(uvroesasad) per stone: mhett cod
«.<O-fi4J0, coding, £3J»-£3^0: tatge
haddock QJO-E3.80, medium £2.80-
W.20. smell £1^0-£2.60: taiga platan
Sj-SO, medium £SJ50-£8.50, best amett
a .00- £4 .00; skinned dogfish (targe)
ra.OO. (medium) E7JS0-Z8.00; lemon
“j®?- rt.CO:
"OeWrsh n^O-a.OO: sefthe £1^20-0.90,
★
S^Ftah Produce: Pobrinos — Par
pound new 0.05-0.06. Mushroo me
raivpound, open 0.30-0.50. dosed 0.50-
^70. Urttiice-Per 1Z. round 0.80-1.40,
1.20-2.00. Cos 1. 20-2.00.
BSIb 40/80mm 3.00-4.00.
^^Lf n l? r *^ P0r bun ® h 0 W- Mim
1.00-1.40. Carrots—
3.00-3.80. par bunch 0.1Z.
nm r L Pound, outdoor 0.08-
CUCtenbsre— Per package 1-60-2.40,
Tomateeo— Per I2ib box d/E 2.00-2,50.
^jd^tiurare— Per 12 Lincoln '3.00-4.50
gtaoj-Per 12/30 2.00-3.00.^^,
°tz°- jsss
flurmor Beane— Per pound O.SMJfr
Apples— Par pound. Bromley 0.304138.
Grenadiers 0.30. Stnwberrlow^Pm'
Box 0.S-0.40. Raspbentae— For .tax
p * ck . °^p4)-20. Gooseberrfee-far
pound 0.20: Lev all a ra per pound OJA-
0.50. Chen-les— Par pound 0,2frO5tt
Red currants — Par Box 0.23. Blsck-
ctsrants — Per Bor 0.30.
. GARDEN — Priced for JM
bulk of produce. In starling per
paefcage except where a thermo*
•rated. Imported Produce: Oranges—
Valencia Lain 56/60/75
5'S' **■ 105 5 -9°. 123 S.05. J4*
4.00, 168 4.50: Moroccan: 16-kq-Vewn-
*'■ <8'113 3.80-5.80: Outsppa:
« S -1 * ® S- 60 . « 5 ?a 56 6.35. 72
®-25' 88 5.60. 112 5.2a 138 4.85. ISO
Lemone— Spenia; traya frta
52?^ 0u, PSon; 15V kfl W
Grapefruit— Jaffa: 204a
¥JF£: 2L+& 36 46s - 40 4 - 90 ' ® ;
5 40 50 5.35. 64 5.1s, 75 e.gs, gg 4k00c
f lf il CBn i 27 4.60. 32 5.2S. 36 SJR
“ S ^. 48 5.40. 56 5.35. 64 4.05. 73
4.35— Ruby same as White. Apptte-
Golden Delicious 18-kg a.lD-
10.00: Tasmanian; Jonathan 11.00.
Granny Smith lO.OO-IO^O. Slum**
Pippins 10.50-11.00; Australian: Gra"W
Smith 10.00-11.00; New Zealan*
Grainy Smith 10.00-11 ,00. Sturmr*
11 .00- 11 .SJ: Red Dohorrv 12.OO-IIOOE.
5 . African: Granny Smith 10.00-11.®-
Golden Delicious 12.00-12^0, Sts* -
8.OM0.S0: York ImpsiW*
U-S.: 18-kg Red Dsileie*
9.00- 12.00. peare— sp a „ ta i,. MsursimJ
Australian: Winter NflB*
^.M-IA.SO. Paqkhams 10.00. Peesha*
— italmn: larqO trevs 2.50-6.00: StW
2.2S-3.00: French; A/AAA 3-.S*
— Ireilan: Florence par lb
s w nt 5 h : 71-lb Santa Rom
0.22-0.50; Japanose 11-Ih, per Ib O-l*'
0.20. Gavbtts 0.40-0.55.
Israoli: Perfctte 5.40: Thompson 5.®:
Chilesnl 5-kq Almaria 0.00, Ribior tS*' -
7.00. Red Emperor 5.20-5.40: Cycmi*: ,
6-ko Cardinal 6 00-6.60. Cheirie*-* >
Italian: Per ib 0 40-0.70: TurViah: SM-
ftto. U.S.: 0-85, Apricots— Spanish:
6-kg 2-50-3.50. Nooterinee— .
large treys 4.EO-0.50: U.S.: 60/B*
’l*^pj75.00s French: 3.50-3.50: Bprt** 5
3.00- 5.00. -
r
X* | XUUV 4 ' V
Jompanie* and Markets
* uuuoouajf iiuij
• * 4bVWM
id
INTERNATIONAL CO MPANIKS and FINANCE
EIB issues $100m bond Br^ks
link to
mil.-,
adv
■ rr,v F.. ri
by ADAM FREEMAN
Euro pean Investment
.Jaiic (-EIB) . faas managed to
•launch a flOOm. lO-year Eoro-
:Solfer bong, despite maEkd&t
. *esistance. The brads, carry, a
wi per cent, coupon at 99},
. suggesting: an issue price yield
« if 15.65 per cent v.'
a At Union . Bank of Switzerland
-Securities, the London lead-
aaugerl Mr Annin Mattie said
i iuantoer of major Eurobond
■rouses had declined to partici-
The offer to jpartidpate
ms made- through a syndication
' technique -viewed as sHgbtiy
xnusual by many in the market
..An krvitation went but by
T 9fexto bond hooves yesterday
‘corning, offering toree brackets
sf CTHnanagement — the houses
,®u3d participate with a 97.5m,
:*^ux or a stake. The
■IBS telex also stated that, the
-^eal could bees much as 9200m,
' ttat would be scrapped if there
tferenpt enough takers to make
■Sp £HQm. A deadline of 2
>’c§ock was set forcepiies from
t potential co-managers.
'"Nearly' all the major London-
♦ased Eurobond bouses declined
ft participate, citing similar
•easons. Some bankers said the
terms were somewhat _ag^*es-
aaro, others criticised the timing
of ihe ' issue (gives - - the;
lacklustre market) rad others
said they were reluctant to- join
-an EEB deal despite- the
borrower’s Triple A rating. /
. This ^aist /^eotipn yas , ex-
plained Jjy a. major Eurobond
instilntioittl Investor -who was
consalted about the issue:. M I
don't tfadaic flie EIB is. a very
welcome, bocxower at ibis time.
Today you’ve got to he a Hffle
hit. special and there is nothing
outstanding abouit the offer.” .
- Mr Miatfle, of UBS Securities,
confirmed that “a lest of toe
more prominent names in the
market are missing.? .- .There
were f.Z9 comanagers 'in-' "-fee
deal* many of toser suntier
European houses or Japanese
and .Gutf houses. "If. people
did not“ participate -It was
becau se the y fetttfoere was no
momentum in the .market' rad
they were reluctant to make ah
effort for the EIB/’ says Mr
Mattie:. •
^A lthough there Is no ftteg
wron g with the borrower — ELBT
remains a ' quality name-—
market sentiment is not incite
favour. The EEB is not viewed
as generous with its terms, and
some market participants datm
that, many investors’. portfoKos
rae- already amply stocked with
EIB.paiier._-:,
The EEB% 16} per cept 1901
seasoned . . hoods yesterday
v traded at a middle: .price of
103f, suggesting a yield of 1532
-per cent-
Prices of . EurodoBar bonds
dosed roughly unchanged last
.night after a .day of quiet
trading. The market 'was firm
In the morning, _ but drifted,
later on after tie New York
Treasury bond market opened
weaker. .
In- the D-Mark sector prices
dosed down i to i point on Iqw
- volume. The DM 100m five-
year 9} per cent New Zealand
/fame lias done went and was
priced- ahead . of schedule
:yesterday at 100}.
- In. Switzerland prices were
u nch a n ged on average in
- moderate trading. . . Natomas’s
SwFr 75m 8-year Issue, the first
public - Issue of this maturity,
was priced at 7} pear cent and
90} to yield 7.59 per cent.
Hd Dti'
ni l s i ;
Km;!. n,j
IliN Iff- ;.
4-:i .J ‘ ? ;
nl;u-
J t!’i ^i.:
?rr (. .
U.j-» i::v
Ji". ui .
.V;r
u-
R.vi 1*.
;, 'T Ih'
llli rDjj-
;• ►rj,
ijJisi
’-tri rtu
»*jx r
" !l I’ll- ft
r »•%
,J W't
-•-•>-* 0 1
'• tv I,.
'■ f'SJr
:* J'T ■:
1 •“isd*
111 . ' .1
• >• r iiipiN, .
Ul'
«-
!.
■■ . rlljp ;
f In;
’■ • i : n* :
,jr
•• " s ! ?
1
i
• ;ii — •
! ire*
A & P back
in the Mack
fly Our Hnandal Staff
3REAT ATLANTIC A Pacific
Cea Company (A & P>, the
IB. grocery store chain, has
Reported profits of $8Bm (23
rents per share) * for the' first
pi alter covering 16 weeks to
rune 19, on sales of $l.4bn: For
he first 13 weeks of last year,-
he group lost $Z0 Jbn (28 cents
*er share) on sales of *L7bn.
The first quarter figures, show-
ng the first profits A A P has
earned since 1977, appear to be
he result of the sweeping pro-,
gramme of cost-ontllug -
Nearly 400 tmpjpfitaMe snper-
narkets have bran shut down or
told
LuxFr 1.5bn loan package
■ BY PETER MONTAGNON, EUROMARKET CORRESPONDENT.
GAZ DE FRANCE! is rrishig
LuxFr LSbn in the Euromarket
as tiie popularity of credfitjS -
denti&rinafed in the Lurean*
bourg- currency, grows.
The credit- is in two equal
tranches of LuxFr 750m. One
is a six-year loan bearing in-
terest at a fixed rate of 14} per
cent; whole the. Other is a seven-
year rotfover credit at a margin
of } per cent over the one,
three or sir-month deposit rate
far iAaerabourg francs.
The package, winch is led by
Basque .da Paris et det Pays-
Bas poor Ie . Grand-Dtrche de
Luxembourg and 'Basque Conti-
nentale de Luxemboarg may be
increased because of strong de--
mand.
Bankers in Luxembourg point
to a growing attraction of deals
denominated in' ..the ' Grand
Duchy cn r ienu y because of fears
of- a possible split between the
Luxembourg and Belgian
francs.'
Such a split is now considered
unlikely, bat - b aides are mu
keen to avail tbCmseives of
opportunities for local currency
lending to protect themselves
against exchange- losses in the
event of a currency split at a
later stage. The msnrande valhe
of such business is such that the
flow. of Eurocredits in Luxem-
bourg francs is likely to In-
crease,: many bankers believe-
Jacobs
By Richard Lambert in New York
PABST BREWING and Olympia
Brewing have agreed on an
ingenious and . highly - compli-
cated merger deal, which is de-
signed to defeat the plans of a
dissident Investor to secure con-
trol of Fabst and strip out its
Olympia, which is already
subject $0 an .agreed .takeover
bid by Pabst, announced yester-
day that it was making a cash
.offer, wrath around 3100m for
49 per- ceist ' of Fabst at 525 a
share. . In effect, toe merged
group - is' buying in its own
shares in such a way as to lock
out Mr Irwin Jacobs, who al-
ready owns around 16 per cent
of Pabst and has offered 922 a
Share for the tost
Under the merger scheme,
Pabst Is offering cash for 49
per cent. of Olympia and com-
mon stock ixf ~the new merged
company for the 1 remaining 51
per cent Olympia is offering
cash fra 49 per cent of Pabst
and the remaining Pabst shares
will be exchanged for convert-
ible preferred! shares in the new
company. These will be wrath
FT INTERNATIONAL BOND SERVICE
s
The list shows the 200 latest international bond issues for which an adequate secondary mH wt
exists. Fra 'further details of these oroth^r bonds 1 see the complete list of Eurobond prices which
iriil be published next on Tuesday July 13.
U.S. DOLLAR
JfTRAIGHTS IMumI
A*tna Ufa 15 8 S/B 7 :» 150
, ■ Changn art
Kir Offer day vmoJc YJald
101 V 101 \ +OV +av 14-39
»tnw fnt^-Rr. J^i to J \gL OTt -O^ +0VW.79
* oys'Rn.M4kmr-nK.^.Mv-m I +i'-iB.w
«n*X O/S 'Rn.' 1«cU
ATT W, 88 400
• .akar Int. Fin. 0.0 92 - 22B
IHP Rnanca 1 Vk 89- -150
Ik. Anwr. NT SA 12 87 200;
•' %. Montreal 14*» 87.,;.. 100
Ique. Indo Suez. J5 89 100
. Irrtiqh Col. Kyd. 14>, 89 200
' hirrougha Int. 19k 88 50
" Canada 14*. 87 750
Sanadafr 15** .87 . 180
Canadian Pac. 14V 82 TS
k aroHna Power 10*a.89 BO
hBC 18 87 TOO
:tticorp O/S 15 84/92 100
• 'Jfticorp O/S 15** 85/97 125
' i#IA 15 7 ! 97 75
. ion. Illinois 15V 99 ... 100
''Juke Pwr. O/S 15*2 89 B0‘
•lupom O/S Cap;1>.0 90 300
?CSC 141, 87 (April) — 50
[CSC 14V 87 (June) — 30
" IB 15** 89 ..... ;... 160
Ocsportfinana 14V 89 ... - 50
Ian. Elec. Credit 0.0 92 400
.un. Elec. Credit UO 83 400
TSatty on Int.' 14 89 — 125
IMAC O'/S Rn. 16 88.180
'ViMAC O/S 16V 85/97 100
' JMAC O/S Rn. 15 89 125
iMAC O/S Hn. 15 87 100
iuH Canada Ltd'14V 82 100
Sutf Oil' 14V 9* . 175
Sulf Oil Rn. 0.0 82'... 300
".Solf States O/S 16 90 .90
nt-Am. Dv. Bk. 15V 87 56
fepsn Dev. Bk. 15V 87' 50
tow Brunswick 16 V 89 75
Intsrio Hydro 14V 89... 150
sc. Gas 0 El. 16V 89 45
■filllipa Patrol 14 89 ... 200-
I.J. Rynlde. O/S 0.0.82 40Q
tsskstchawan 18 89 ... 125
ihBB. Canada 14V 82 ... 125
-Spain 15V 87 K»
• tupsrtor O/S Fin. 14 89 125
Jwed. Exp. CT.-1GV 89 TOO
:W»d. Exp. Cr. 14V SO WO
trod. Exp. Cr. 0.0 94 200
-axaa Eastarn 15V 89... BO
Inian Carbide 14V 89 150.
Valla- Fargo 1. F. 15 87 . 75
. Vortd Bank 14V 87 ... 500
. -Vorfd Bank 15V 88 — .<®0
101 V 102 V + 0 V +TV 13.70
25 V aSV -HSV+ 0 V 14 J»
« 4 V 86 V. 0 -+ 1 V 1 W 4
89 V- 90 V .+ 0 V + 2 . 15.08
96 V. 98 O + 0 ** 15.78
9 BV - 0 V+ 1 V 18.13
98 V 97 0 +1 15 J»
.- 90 V 98 V - 0 V + 0 V 15.79
90 V 97 V +<*V +OV 15 J 7
" 89 V 99 > '+ 0 V + 0 V 1 VS 8
MV 94 V 0 + 0 V 15.71
T 00 VMJ 1 0 + 1 V 1 SJ 3
-TOO 100 V — OV + 0 V 15 JM
99 V WOV 0 + 1 V 14.79
wo WOV + 0 V + 1 V 15 J 8
96 V 96 V + 0 V +OV 1 BJ 7
WOV WOV +OV + 1 V 16 J6S
84 V 96 V +OV + 0 V W .77
34 34 V -OV + 0 V 15.15
96 V 98 V -OV + 1 V 15.75
96 V 96 V 0 0 15.75
99 99 V— OV+ 1 V 1 A 63
95 V 9 BV+OV + 2 V.«-»
27 V 27 *, — OV +OV 14.43 ..
. 23 * S 4 V-OV+OVf 4 J»
96 V 97 V + 0 V+ 2 SV 14.68 .
WOV WOV HhOV + 1 V 15.78
987 . 99 V + 0 V+ 1 V 15^7
86 V - 96 v a +fV 15 e 4
9 BV 99 + 0 V +2 1534
05 V 96 V +OV + 1 V 19.84
97 V 97 V “OV + 1 ' 14 A 7
' 2 BV Z 7 V -OV +OV 14-58
195 V 96 V -OV + 0 V 16 A 1 ■
96 V 96 V -OV +OV 1 IU»
101 V 102 0 + 0 V 14 A 7
WOV 10 TV -OV +ZV 15 - 86 :
97 97 V 0 + 1 V 15 J 9
9 BV 100 V -OV + 1 H 15.46
9 «V 86 V +OV + 1 V 15-19
28 V 2 *V -OV +OV 1480
101 101 V O + 1 V 15.62
95 V 96 V O + 1 V 15 JS .
MV 99 V 0.0 VtM
93 V 94 V +' 0 V + 23 a 15 j ?2
97 V 98 +OV 0 . 15 . 76 . ,
83 V 94 -OV D ' 16 . 18 '
1 »V 19 V — OV+OVT 4 J 96 '
WOV W 1 V -OV + 0 V 15-48
97 97 V.+ 0 V+ 2 .. 15 JW.
97 V 98 V + 0 V + 1 V 1652
95 V 96 . + 0 V + 1 V 15 J 52
98 V 9 BV+OV + 1 V 15 J 56
.Ckaing prices cm. July 6
Changaon
OTHER STRAIGHTS tasoad RM TMfer day anak Yield
Bell .Canada, 1 ® 89 CS-. 100 .. ftt. . 97 ** . 0 +1 16.64
, Gan. Pac,. s. iBVto^-oo- ' x m u '9fid^a
• Cnf. Pondar 17 V 8 SCS 30 t
Awrega price chsooas -On day ^OV.on monk +TV
jklTSCHE MARK '
. . ITRAIGHTS feauad
.^ian. Dev. Bank 9 V 92 150
'.iiStralML 9 V 81 200
,u atria 8 V 92 100
~ .» relays O/S In. 8 V 94 - WO ■
Jo wo tor Int. Rn. 8 V 89 50
lanada 8 V 89 200
‘-.oiiip. Tal. Eap. 10 V 92 TOO
tred. Fbncfer 8 V 92 WO
*en marie 10V 92 — -WO
OF a** 92 100
■ .SB 8V 82 ...;. — V. ■' WO
irt. -Are. Dbv. Bk. 9 82 WO
• fecnl. Rnanciare .11 90 150
Joule Hydra 8 V 92 ...... WO
Hiillpa Lamps BV S2 ... 100
tulip Morris 8 V 90 ... WO
■ fusBk 10 V 82 ... iso
janfe W 82 WO
• . rNCF 8 V 82 WO
’ouBtnautobahn 9 V .94 50
tenneco Int. 9 82 .100
Vo rid Bank 9 V 89 222
Vortd Bank SV 92 »»
Bid Offer day. weak YMd
98 V 99 V- 0 - -OV 9.46
102 V W 3 V “OV +OV BJS
94 V 86 V-OV+OV 9.16
95 V 95 % 0 + 0 V 9 X 2
95 V 95 V -OV -OV 938
101 V wrv + 0 V + 0 V 8-22
100 VI 01 V — OV +OVTOJS 1
99 96 V ” OV 0 934
102 V W 3 V +OV + 0 V 9-66
100 V 101 -HPa+OV 9.36
94 V 96 V -OV + 0 V -AM
97 V 97 V -MW, — OV 9 J 9
96 V 96 V -OV +OV 11.88
97 V. 98 *, 0 O 843
: 'S 7 V B 8 V o 0 M 3 .
99 V 99 V-OV-OV BJ 1
102 V 102 V -OV +m* »-70 .
99 V 100 -OV + 0 V 10 - 0 ®
95 *. 96 V 0
101 V 10 ZV -OV + 0 V 9 j |7
S 7 V 98 V 0 0 S - 34
TOO 101 V -OV +fPi M 6
94 V . 96 V -OV +OV 0/0
day -OVonw** +0V
iWSS FRAUD ‘
' ITRAIGHTS
: llr Canada BV 92
-Asian Dav. Bank-7 82.^ WO
A if calls 7V 92 80
«u9tralia 6V 94 WO
-AIPSV 92 .. ■ 10 °
- Qaoga on .
hndad Bid Offer dw YWrf
-too 100 V 101 V 0 + 0 V 0-11
100 V 101 — OV + 0 V 8 JB 7
90 V 96 V 0 + 0 V 8 J»
104 V 104 V O '-MV 5 J 9 S
97 V 97 V -OV — OV 7.13
■■*FF-Mexioo 8V-S2 ...... 50
, 'te-9p- Denmark SV 92 25
"!rawn Zallartwdi BV 92 100
■ nroparat 7V 92 ......... WO
■ md. Fund Finland BV 92 "30
’■''lapari Dav. Bank 6 94... WO
■Aohs CHy B*i 92 ...... W
J ’ommuniane -7V 92 Jo
lurerha Int. F?n. 7V 92 80
- c-dltsui OSK BV 82 10O
t laTinss SV 92 ............ 80
• ’lew Zealand B 92 - WO
-liilip Mania 6V 82 WO
, ■ -lilfip Monit BV ,94 ... WO
Clonfa 7V 92 »
i- reklaui Pm. 5V 92_WW 70
'i^toc. lux. d* Cnt. BV 82- to
£ ivansfca HsndeTs. BV 92 WO
— Irolsr Wasaar ,8V 92 WO
'- 7 <warlbarq Kraft BV 92 BO
O'-
97V 88 — OV 0 8.61
104V 104V +0V +0V 7.73
99V 89V-0V+0V 6»
100V WOV “OV-OV 7.17
98 96V -OV-OV 7JB
99V 99V -OV -&• SM
MOV 100*, 0 +dv«J»
100V 100V -OV -OV 7.19
SS *V 0 0 833
1S9V 99V -OV-OV 6J»
Si 85**-— OV — OV 8to7
. WOV WOV o +0V S35
flO» 103V +2 +OV B-W
1«V 101V HHOV -O «-W
MV 9B». +0V-0V &2«
103V 103V -«i +J , »
tMV 106 +0V -1 7.W
# sn-ff.-flv 7*.
B6V 96V +0** +0 1 * *-74
W3V 0 +0V .AM
d-y 0 oe«rek 0
w**.
--EN STRAIGHTS
... jB BV 92 --s-xj
...lt.-ABW. Dav. 8 V 91
>.apan AWiawJV to-
,t law -Zealand 8 V 87 —
Vorld Bank BV 92
Change on
Bid Offer ttejf preaKSfleld
S7V 97V 0 +°V 8-®
101V 102V 0 0 • • BLEB
85 V S 6 V 0 + 0 V 9 . 02 .
99V WOV 0 +OV 8.40
96V 99V 0 +OV &54
^re”hi^a 7 - On day 0 on weak ,+OV
Gu Metro. 17V to CS 20
OKB 18V 88 CS .: 83
Q- Hyd-16VB3 (My) CS 50
. Quabac-£rotf . 1BV 89 CS GO
U. Bk. Nwy. SV 90 EUA. 18
Amro Bank 10 87 FI ... ISO
Bk. Maes k H. W 87 » 75
EarofiRie 10** 89 fl SO
IrelfMid lOV 87 R 75
Phil. Lamps. 10V 87 Fl_' 100
World Bank 10 87 -H ... 150
OKB. 1* 86 fFr 400
Sotvsy at C. 14V » FFr 200
BanafioM 14V 90 C (D> 20
BFCE 14V.B7 E -A — 30
BNP 13V 91 t.. - 15
-C8CA 13V 88 £ 20
Rn. Ex- Crod. 13V 88 C 15
Gan. Elec. Cti. 12V 89 £ BO
Hiram Walker 14V 86 £ 25
Morale Hydro. 14V 87 £ 30
PrtMtbankan 14V ,88 £ 12
Quebec 15V 87 £~.~— • 35 '
Re*d IN d) NV 1ft. 89 £ 25
Royal Tixwtco 14 86 12
SOT Franca 15V 82 £-. 30.
Swred. Ex. Cr. 13V -86 £ »
Euroflma -WV 87 U»+r 600
Eie 9V 68 Uafr - 600
FLOATING RATS
NOTES
Al Had Irish 5V 92
Bk. of Tokyo 5*, 91 (D) OV
Bk. Nova -Scotia 5V 83 OV
BFCE 5V 88 ....
198V 88V 0 0 17.33
196V 87V +OV +0V 1733
197 87V+flV+2VT7to
t99V -89V -to +0V-1BJ9
199V 99V “ OV +0V 18.57
92 93V +OV +1VWL95
SBV toV 0 +0V W-25
97V 9BV 0 +OV 1058
99V 99V 0 +9V1Q,«1
87V G7V +0V +OV11.W
99 V wov. . o •r+tov'wj*
97V 96V O’ +0VWJ7
sev 93V o +0V 18.63
92V 93V O +OV 17.49
87V B8V -OV -OV 1898
S8V 99V +0V +0V44.7B
84 96 +0V+1V 14,62
85V 96V +OV +1 14.56
96V 97V +OV +OV 14.74
*2V 9®V +0V +TV 14to9
98- 96V O +OV T&.7*
98V 99V +0V +«V 14.72
95V 99, -OV -OV 15^1
101VUCV +OV+OV 14.76
W3V W4V +0V +0% 16.58
88V 90V +0V +DV MJ4
96*. 100V O .+OV 15.41
97V SBV +OV+OV W.48
S5V 9BV 0 +OV 1TJ5S
82V 83V — OV +0V-11^8
Spread Bid Offer CJh Cxpn C.yid
,.»- 0 V » 9 BV 15 /W 15.89 15 to 7
387 , 89 V 8/12 1 EV 1538
98 V 33 V 29 /TO 16 V 1530
, 0 V 88 V 99 V 28/10 15 15.16
BFCE 5 V 87 OV - 99 V 99 V 27 / 7 . 18 V 1833
BNP BV 89 WW . - OV t96V 98V 8/11 15.19 1&42
Caiaaa Nat. Tala. SV 90
CCCE 5 V 2002
CCFMF SV 92 ..... -
Chemical NY 5 V 34 ...
Cent. Illinois 5 V 94 ...
Credit Ag rl cola 6 V 97 ...
Credit dv Nrad &V 92 ...
Credit Lyonnais 5 V 97 —.
Credit Nat.- BV 94 30 V
Danmark. Kngdm. of 82
Ireland 5 V 89/94 ....
OV 99 99V 21/10 TSV 1537
OV S8V 9BV IT/12 1BV- 19.61
«V 39 99V 10/12 UL44 W 35
OV SBV B9V23/9 16.69 TB.79
OV - 88V 99V 24/9 WV W£2
OV 99 99V 24/9 1&44.15J5&
OV 997. 99V 23/12 1*61. 16-96
OV 99 - 39V l/W-16 , 16.12
98V 99 ‘ 9/9 '.14.ri 1437
OV* t»V 99V 25/9 16.44, 1539
ov we 98V2S/11 vn ibloi
KsnsaWa Oaake 5 V 92 OV SBV 9 BV 6/14 1831 . 15^15
Lloyds Eurofin 5 V 9 » - SOV 96 V 9 SV 29 /W 17 V 17.28
Long Term Cred. 5 V 92 OV 88 98 V 2 B /11 MV .1439
J.- P. Morgan 5 V 97 ™ 50 V SBV 99 V 12/8 14 V 14.77
Nat. West. Rn. SV 91 ... SOV 99 V S 9 V 15/7 16.19 1534
New Zaafend-SV 87 OV S 9 V 89 V 7/10 1536 15.08
Nippon Credit 5 V 90 — OV 99 99 V 10/8 1636 18.18
“ “ OV - 98 V 99 V 2/12 14.19 1436
OV » 99 V T 7/12 1531 1533
OV 98 V 39 V 23 / 9 - 15 V 16.55
OV 98 V 99 V 24/11 15 15.15
OV 88*1 99 V 1/9 1531 16M
OV 98 V 99 18/11 T 4 V 1536
Sweden 5 V 89 — J— OV B 9 99 V 28/8 1531 15-43
Toronto Domin’ n BV 92 OV 98 V 99 V 41/6 16 V - 16.54
Awerege pries ebangaa— On dayO dri-weak + 0 V
ORshora Mining 5 V 91
PKbanken 6 91
Scotland Int. 5 V 92 . —
Sac. Pacific 5 V 91
Sdoiata Ganerote 5 V SI
Smmtertf Chart. 5 V 91
CONVSmBLE - Cnw. Cnv.
BONUS - data price
Ajinomoto SV 98 7/81 S3
Bow Vaitey Inv. 8 95 4/8123.12
Bridgestone Tim 5V 993/82 470
Canon -BV 35 — .T/B1 829
Canon 7 37 — : 7/827483
Chufitti Pham. 7V 96— 7/82709.8
Fujitsu Fsnuo 4V 98 10/81 5641
Funikewa Elec. 5V 98— 7/81 300
Hitachi Cable 6V 96.—.. 2/82 515
Hitachi Cred. Cpn. B 9B 7/81 1612
Honda Wotor 5*» 87—... 3/82 841
Kawasaki SV » — 9/81 229
Maori 6 96 7/818464
Minolta Canwni 5 36—10/81 826.4
Minorca BV-.S7 ....... 5/82 8.16
Moreta 5V » ; 7/tl 2168
NKX BV 86 7/81 188
Nippon Choml-C. 5 81 ...IMP 919
Nippon Ssctrlc 5V 97... 2/82 '848
Orient Finance BV 97 — 3/82 1205
Sanyo Electric 5 96. 10/81 652
Sumitomo Elec. 5** 97... 3/82577-3
Sumitomo Mat, BV 96„,W/81 296.1
Swiaa Bk- Cpn. BV 9fl... 9/80 191
Konishfroku 6 SO DM ... 2/82
MitsubisU; H. 6 99 DM 2/82
Chg.
BM <Olfer day
81V.82V+OV 482
9*. 97 66^7
82V 84V —0 s * '-0.77
83V *5V -OV 22-48
88V 90 .-1 431
. 98 97V — OV 337
80V 82** 0 9.46
to 81V 0 —4*42
81 82V -OV 337
74V 7BV-OV W33
81 82«* 0 7.67
53V -OV 1B34
93V 94V HIV 0.08
BOV 82V +OV 35.78
178*, 78V HP, 3WS
64V 66 -0*2 20.66
59V 70V -OV -22.51
» 82' O' 21.52
•St- 85** _oV g.52
to;'8*V-OV 7.19
.82** 64 -OV 13.07
79V 80V —IV 8J0
91 82*» -OV 37.15
7TV 73V 0 29.82
5BS .W1 702 +1 W-Zl
283. 89V 90V — OV 23.64
* No. information airatia MD -p re vious dry's pries- *
' t Only one market maker supplied a - erica.
Smrigbt Bonds: Tire yield re tire yiatd to redemption of tha
mid-pries; the amount Issued is Tn millions of currency
units except for Yen bonds where ft fa in -billions.
Change, on vreekwCKange enter price a weak earlier.
Floating Rate Notes: Denominated in dolEeiV unless other-
wise Indicated. Coupon shown is mini mom. CLdte«*Dro
.next Coupon baoomae, affeotiva. Spread^ MergTn above
six* month offered rate .(4 three-mo n th^. § iboua mean
. ratal for U.S. dollms; G. cpn— The ca front coupon.
C.yId=The currant yield.
Convertible Bonds: Derominaredln' doMare on tan other-
wise indicated. Chg. day— Change on day.'- Cnv, data—
■ Fiflt date tor conyarelon Imp- shares. Cnvi price—
Nominal amount of bond pier aha ip. "expressed In
_ currency of ehere at conversion rate toted at iasim.
• Prom — Poreenupe premium of the cumint effective price
.of acquiring rum vis the bond over .too moat recent
price of the shares.
©The Financial Times Ltd, 1982. Reproduction in. whole
or tn part In any tons. not pe rmitte d without written
consent. Date supplied by DATASTREAM International,
around $18 a share and will not
carry Totes until they are con-
ceited.
At that point. Fabst share-
holder yrill control roughly 70
per cent of the merged company
and Olympia shareholder will
control the tost ’
The. idea., is that. Mr Jacobs
win either tike cash for his
Fabst shares and go away, or
be left with, the preferred. If
he. decides to convert preferred
stock into ordinary shares, he
wfU be obliged to boy m aH the
other preferred shares before
he can get at the underlying
assets. And .that, Pabsfs ad-
visers say, win take away all the
profit that might be realised by
liquidating the company.
■Lehman Brothers, Kuhn Loeb.
wtuch. is advising Pabst, claimed
yesterday that this was the first
scheme of Its' kind. Hie two
brewers had been overcapi-
talised prior to' the merger,
Lehman said: after the deal,
which was a “fait accompli,”
the enlarged company would be
left with some $150m of debt
rad $16Qm of stockholders*
funds.
By rationalising the two com-
panies 1 prod u ction and market-
ing facilities, it would be pos-
sible significantly to improve
shareholders’- returns on the re-
duced equity, Lehman added.
Amca bids
$262,5m
for Giddings
By Our financial Staff
-AMCA INTERNATIONAL, a
diversified industrial company
formerly known as Dominion
Bridge and the Canadian
Pacific group’s fastest-growing
affiliate over the past five years,
bos made an unsolicited take-
over bid worth U.S,$262.5m for
Giddings and Lewis, a machine
tool @noup based to Fond du
Lac, Wisconsin.
The bid— $25 cash fra each
Giddings common share — is
Amca’s second attempt to take
over a machine tool company:
In 1980 it sought to acquire
Warner and Swasey Company
but lost out to a rival offer by
Bendix Corporation, the large
diversified U.S. group whose
major activities cover the auto-
motive,' aerospace and indus-
trial markets. "
- -Giddtogs’ directors were
unavailable for comment on the
Amca offer, for - which Lazard
Freres is dealewna-nager.
Amca, which currently owns
47-pex cent of -Giddings* 10.5m
common shares, earned $70.2m
or $2.56- a share on revenues of
$lw57bn in 198L
Net earnings of Giddings
reached a record $35. 2m or
$&35 a share fra 1081, on
revenues of $3 93m,
-Giddings’ stock 'closed on
Friday on the New York Stock
Exchange at $12.75.
Uruguay to
raise $130m
By Our Euromarkets
Correspondent
URUGUAY is raising a $13fcn,
one-year -credit in the Euro-
market to. help refinance the
debt of its hydroelectric project
Coraision Tecnica Mixta del
Palmar,
The -loan, wCuch is being
handled on a "dub” basis by
Crocker National Bank, repre-
sents a cautions resumption of
borrowing by Uruguay, which
was effectively frozen out of the
market by the FaMands crisis.
Although it manures in one
year, the credit can be extended
on an annual basis for a maxi-
mum of three years. Each time
it is extended the borrower will
pay a } per cent extension fee,
while toe basic margin over
eurodollar rales is 1 per cent
Uruguay's economy is heavily
intertwined with that of neigh-
bouring Argentina . and it was
one .of the first casualties of toe
general 'contraction of lending
to Latin America in toe wake of
toe FaHdands crisis.
Rather than force its borrow-
ing, Uruguay chose to refinance
maturing debt on ' a short
term basis in .toe hope that the
market fra medium term cre£ts
would eventually reopen.
Uruguay’s total foreign debt
amounts -40 some • $3. lira, of
which roughly $L5bn is pftbiic
sector debt.
CONTINENTAL ILLINOIS WARNS OF LOSS
Government closes Oklahoma bank
BY DAVID IflyRIfi IN NEW YORK
SEVERAL .MAJOR U.S. .banks
stand to suffer losses from toe
closure yesterday of. a rela-
tively small bank in Oklahoma
which went Into receivership
after its energy lending
business collapsed, sending
more ripples through the
already edgy U& financial
Community-
Continental Illinois, toe
sixth largest U.S. bank and toe
one believed to have the largest
exposure, announced that the
closure would’ oblige it to
report a loss for the second
quarter of this year, though it
gave no details.
The Penn - Square Bank of
Oklahoma City was taken over
by Federal banking- officials
yesterday after several days of
speculation about its soundness.
The Office of the Comptroller’
of the Currency said toe bank
had made large losses- on its
energy loans and bad
encountered funding problems.
The bank has about 5460m in
deposits and 28.000 accounts.
- The failure marks one of the
most serious collapses m the
commercial banking industry
in toe most recent financial
squeeze. Several savings banks
have frilled, but their problems
are of a different order.
Although toe bank is
relatively small, its failure will
affect other banks in two ways.
Some large hanks are believed
to have lent it money.
Potentially more serious, Penn
Square Bank had put together
-hundred® of millions of dollars*
worth of energy loans and sold
them off to large banks for a
fee, a practice known as loan
participation.
If these -energy loans go bad,
as appears to have been toe
case. ,tbe loss is borne by toe
bank ' which bought the
participation.
Although the type, and extent
of other bank's exposure was
not revealed yesterday, bank-
ing sources said Penn Square
had sold about $2bn worth of
participations. The largesi
share is believed to be held by
Continental Illinois, which is
based in Chicago and had been
aggressively expanding its
energy lending.
In a prepared statement, the
Chicago bank said that it had
examined its loans and had
found it necessary to make u a
large extraordinary addition to
our provision for loan losses”
which would force it into toe
red for the quarter which ended
lost Wednesday. But the bank
said it would still make a profit
for the first half of toe year,
including the first quarter's
earnings of S66.8m.
Chase Manhattan Bank of
New York also confirmed that
it was exposed to Penn Square’s
failure hut claimed losses
would not be a significant
problem. Chase’s second
quarter earnings have already
been wiped out by its $117m
after-tax loss on the Drysdale
Government Securities affair.
Other banks exposed to Penn
Square Include Seafirst, toe
largest bank in Seattle, and
banks in Chicago and Michigan.
None had any immediate com-
ment yesterday.
Penn Square appears to have
been a victim of the tinrp
decline in energy prices which
has thrown the U.S. oil patch's
energy boom into reverse and
caused widespread failures.
Concern for toe security of
energy -lend mg banks has been
expressed for some months now.
Penn Square is believed to have
placed more than three-
quarters its loan portfolio
in oil and gas.
Its failure also adds to the
growing unease of the U.S.
financial community which has
been shaken by the Drysdale
affair and problems at other
financial institutions caused by
a combination of record higi
Interest rates and economic
recession.
Braniff outlines debt problems
BY THIRY BYLAND M NEW YORK
BRANIFF INTERNATIONAL
bas made a regulatory filing of
Inability and asset schedules
with a Federal bankruptcy court
in Fort Worth, Texas .'confirm-
ing that unsecured creditors
face substantial . losses if its
reorganisation plan fail to gain
acceptance. -
The big test of this plan will
come in 15 to 85 days, when
Braniff Airlines, toe main
operating subsidiary, makes its
regulator yfiling.
Braniff International’s filing
concerns the. elimination of
debts at Braniff Realty, a
wholly owned subsidiary hold-
ing real estate ' interests - in
Dallas, cargo facilities at St
Paul, Minnesota, and.. title to
seven Boeing 727 and two
McDonnell Douglas DCS
aircraft.
Braniff .Realty owes $16.8m
in secured debt to a group of
five banks. Braniff International
plans to- clear Realty’s debt by
handing over to the banking
group a $Z4m pro misery note
plus accrued interest of $5.9m.
This would wipe out Realty’s
secured debt, but the plan also
a] ows for full repayment of
unsecured debt, of $144,000 .due
mostly to minor trade creditors.
While the unsecured debts of
Realty are relatively insignifi-
cant, toe principle involved is
important for the unsecured
creditors of Braniff Inter-
national, which include such
names as Boeing, holding debt
of $93m, and UT Credit, a
United Technologies subsidiary
with $7.5m debt.
The - Federal bankruptcy
court will rule on the Realty
plan within 30 days. Neither
Boeing nor UT Credit would
comment yesterday.
The plan indicates afresh that
payments to unsecured
creditors hinge on BranifFs
efforts to reorganise its
operations and avoid final
bankruptcy.
Airlines in lending agreement
BY OUR NEW YORK SHAH*
CONTINENTAL Air Lines and
Texas International Airlines
agreed in principle with their
major bank lenders and most
oter institutional lenders to re-
structure $295m of long-term
debt Final ratification fay
shareholders of the merger be-
ween the two companies is
expected in -two weeks. .
The agreement will free Con-
tinental, which is 51 per cent
owned by Texas Air, parent of
Texas International, from con-
tinuing with month-by-month
amendments to its debt
schedules. Mr Frank Lorenzo,
chairman of Continental and
president of Texas Air, de-
scribed teh agreements as “ an
important part” of the plans
to bring both companies h ac k
to profitability.
Continental said its cash posi-
tion has been improving since
the year end.
Re-organisation oi the sche-
dules of the two companies has
trebled the number of available
connections through Houston
U.S. insurers
agree to merge
Bjr Our New York Staff
THE DRAWN-OUT bid battle
between American General and
NLT — in which both companies
were bidding for each other-
ended peacefully yesterday
when the two sides agreed to
a merger valued at roughly
$1.5bn. The deal will create the
fourth largest shareholder-
owned insurance company in
the U.S., and the eighth largest
diversified financial company.
American General, which
started toe bidding in April,
emerges as top company under
yesterday's agreement. It is
Offering $46 a share in cash for
some 15m NLT shares, and a
mixture of fixed income and
equity securities — also worth
$46 a share — for the rest.
Five NLT directors will be
appointed
The deal is subject to toe
approval of both sets of share-
holders, as weH os state
insurance commissioners, toe
Federal Communications Com-
mission and toe Federal Home
Loan Bank Board.
Apart from its insurance
interests. American General has
a wide range of financial service
activities. Its shareholders’
equity amounts to $1.2bn. NLT*s
main business is life and health
insurance, and its shareholders*
equity totals $l^bn.
MAKEETS •PQREX-M01IEX' MABEZ^
Continental Currencies -
the other side of our Foreign
As Australia’s laigest and
best known bank, the Bank of
New South Wales is already
widely respected as one of the
world’s major dealers in Pacific
Basin Currencies - but 50% of our
foreign exchange business is in
continental currencies.
So remember - whatever your
currency requirements or exposures
talk to the Bank of New South
Wales before making a move.
Telephone our London Dealing Room (01) 283 5321
Telex: 8956425 -Reuter Monitor page code: WSXD
Reutersjdirect dealing code: NSWL
Uf Bank of New South Wales
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Boating Rate Note* due 1990
Lloyds Eurofinance N.V.
(Incorporated In the Netherlands with limited IhMIitf)
Guaranteed on ajsubordlnated bash as to '
payment of principal and interest by
Lloyds Bank Pic
(Incorporated In England with limited Imb iHtv). •
In accordance with the terms and condition* of the Notes and the
proYmons of the Agent Bank Agreement between Lloyds Eurofinanca
N.V„ Lloyds Bank Pic, and Citibank, N.A., dated July 2, 1980,
iSju* ° hB T^? r * l rVen ** Rate Interest has been fixed at
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(male* .n uiieret p,nod of IM dl^). M d piym.lTwIlI i» mufe
against coupon No. 5.
July 7, 1982
By: Citibank, NA, London. Agent Bank
r — —
OTIBANO
u.s. $ 15 , 000,000
\
The TnflnsfiM Bank of Japan, Limited
London
Floating Rate London-Dollar Negotiable
Certificates of Deposit due 7th July, 1 983
Inacccg daa cawi&^provisions of the Ccrtificafes, notice ■
is hereby givni that for the six month Interest Period from
7th July, 1982 to 7th January, 3983, the Certificates will
cany an Istoest Rate of 16£-% pc* annum. The relevant
Interest PaymentDate will be 7th January, 1983.
Credit Sawte Fled:
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liniBby tfw i dMt fadie6innqd»fa«n7diJalB P82tt»7thjimarfr
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'■ ‘ir-^-Xauay July 7 19S2
INTERNATIONAL COMPANIES and FINANCE
Fiat continues on the road to recovery
BY RUPERT CORNW&L IN TURIN
FIAT; ITALY’S biggest motor
company, is expecting “ modest "
overall profits for 1982.
The outcome should he
girailpr to last year when con-
solidated earnings are likely to
have been about L50bn to LGObn
($43m), said Sig Giovanni
A gnpiii, chairman, yesterday.
This was a small figure when
compared with Fiat’s sales and
the volume of its employed
assets, he said after the annual
meeting. -
But a second successive year
in the black will be further
evidence of the Turin-based
group's recovery from 1980,
when its total losses reached
L240bn.
Details of the 1981 results
will not be known' until
September, when the group
presents its first consolidated
accounts, which will be drawn
up, by Arthur Andersen,
accountants, and will cover 450
companies operating In 60
countries.
On a properly consllidated
basis, tumoverr will drop to
L20,000bn from the previously
announced 122,00 Obn, as a
result of the exclusion of certain
associated companies less than
51 per cent controlled by Flaf,
above all in the civil engineer-
ing sector.
Group investments of
LLOOObn last year were
entirely self-financed, Sig
Agnelli said. Overall debt was
little changed at L7,000bn not-
withstanding the advance in
turnover from 1980’s estimated
L16,500bn on a consolidated
basis.
Sig Agnelli was confident that
the group — after its recent
streamlining' and productivity
gains — would be able to weather
successfully the present slump
in world car markets. A
recovery, he indicated, was un-
likely before nest year at the
earliest.
Hat had completed its
retrenchment programme of
disposing of loss-making sec-
tors with last month’s surrender
of control of Sevel, its troubled
Argentinian car affiliate, and
the agreement (still not ratified)
to transfer much of its Teksid
steel division to the state-
owned Finsider concern.
There were no plans for a
rise in capital of Fiat.SpA, the
group holding company, from
its present, level of L337.5bn.
Total debt stood at the reason-
able level of about one-third
of total turnover, Sig Agnelli
said.
He did not comment on the
recent withdrawal by both pri-
vate and public employers in
Italy from their 1975 agree-
ment with the unions on wage
indexation — an issue which
threatens the survival of the
one-year-old coalition Govern-
ment headed by Sig Giovanni
Spadolini. Both sides. still had
six months to reach a substi-
tute agreement, ' and there was
no reason why they .should not
do this, said Sig Agnelli.
Shareholders yesterday ap-
proved Fiat SpA’s 1981 net
profit of L97bn, up from L5lbn
in 1980. As previously an-
nounced, the 1981 dividend is
being increased to L140 per
share from L125 the year
before.
Sig Giovanni Agnelli.
rfr airman of Flat
Chiu family in Far East reorganisation
BY ROBERT COTTRELL IN HOMS KONG
FAB HAST Consortium, the
diversified Hong Kong group
controlled by the Chiu family,
plans to concentrate its
interests in property investment
and development
Certain financial, property
and flour-milling interests held
by PEC will be injected into a
subsidiary, Cheong Sun
Developments, which will in
turn sell property to FEC. The
Chiu family will then boy from
FEC iU 93 per cent interest in
Cheong Sun, bat with the inten-
tion of substantially broadening
Cheong Sun's shareholding base
over the next six months. The
deal does not affect the Chiu
family’s other quoted vehicle.
Far East Hotels and Entertain-
ment
Details of the re-organisation
are:
• Cheong Sun will sell to
FEC a package of property
and property interests for
HK$161.6m (U^S 427.3 id) cash,
• FEC will sell to Cheong
Sun a 37 per cent interest in
Madison Securities, for
HK$88.3m cash on deferred
terms. FEC will also grant
Cheong Sun an option to pur-
chase 100m deferred shares in
Madison at HK$1 each.
#' FEC will - also sell to
Cheong Sun the capital of Far
East Flour Mills for HK$LL8m
cash.
• The Chiu family will transfer
into Cheong Sun a 36 per cent
interest in FEC, in exchange
for which the family will
receive 39.65m new shares in
Cheong Sun, valuing the FEC
holding at HK$2372 ul
• The Chiu family will buy
from FEC its 93 per cent
interest in Cheong Sun at HK$6
per sha re. T he total considera-
tion of HK$202.Bm will be met
with HK?38J8 m cas h and the
repayment of HK3>164m owed
by FEC to the Chiu family.
The effect of the reorganisa-
tion will be to give the Chiu
family 98 per cent of Cheong
Sun. Cheong Sun will in turn
hold 36 per cent of FEC, and.
37 per cent of Madison.
Exercise of its deferred share
option would take FECs
Madison holding up to 43 per
cent
. The Hong Kong takeover
code normally requires a full
bid where more than 35 per
cent of a company is acquired
by one party. The takeover
committee has, however,
waived litis obligation where It
would have arisen during the
reorganisation.
The Chiu family will, how-
ever, offer to buy any outstand-
ing Cheong Sun. shares through
the market at HK@6 each, for
two weeks following comple-
tion of its proposals. It then
plans a gradual reduction of its
Cheong Sun holding, and hopes
to see the shares more actively
traded.
Finnish insurance group
improvesnet surplus
_BT. QUR FINANCIAL STAJT^r.:
POHJOLA, the Finnish insur-
ance group, reports another
year of steady progress with the
net surplus for 1981 improving
to FM 202m ($A3m) from
FM 18.7m in 1980.
Premium income is 15 per
cent higher at FM 1.42bn and
investment income has been
almost as buoyant — rising by 13
per cent to FM 271m. But claims
experience worsened. and
operating expenses jumped by
nearly a sixth.
Non-life premiums performed
better than the average for the
Finnish ’ insurance industry
helped -by Pohjola ? s range at
jubilee year special rating
offers. Life insurance business
ran ahead of the inflation and
therefore “indicated real
growth.**
Claims grew at a faster rate
than premiums and as a result
“profitability deteriorated some-
what” NomirtaBy, however, the
group companies achieved a
result equal to that of 1980, the
company says
Last year's increases in
operating expenses stemmed
largely from staff costs which
in- turn were hampered by a.
strike lasting several weeks. At
December 31, the group balance
sheet totalled FM 4.6bn, against.
FM 411m a year earlier.
Dynamit Nobel expects
to return to the black
BY OUR FINANCIAL STAFF
DYNAMIT NOBEL, the West
German rfaAmiftalK and
explosives group which is part
of the Flick industrial empire,
expects a . recovery for 3982 .
fallowing losses in 198JL
Last year Flick was forced to
absorb a loss of DM 382m
($16m) by Dynamit Nobel,
which in 1980 did not pay a
dividend to its parent company.
However, for 1982 Dynamit
Nobel says earnings will be
such that Flick will' not be com-
pelled to absorb further losses.
Flick, which is one of the
biggest family businesses in
Germany, has interests ranging
from armaments to paper pro-
ducts.
• German Texaco’s 1982 first
half losses in the oil business
are too' big to" be offset' by
profits in other areas. Mr Armin
Schram. mana g in g board chair-
man told a shareholders meet-
ing. He declined to make an
gaming * forecast for the foil
year.
The company reported 1981
net profits of DM 165m (368m)
down from DM 2072m a year
earlier. The result was achieved
on revenues of DM 10.9 bn, up
from DM 9bn in 1980. '
This advertisement compfias with tha tequkements of the Couttcff ofTbe Stock Exchange.
Banque IMationale de Paris
U.S. $75,000,000
Floating Rate Notes 1987/1990/1994
Tha following have spread to subscribe or procure subscribers for the Notes:
Samuel Montagu & Co. Limited
Arab Banking Corporation (ABC)
1BJ International
Limited
Le hma n Brothers Kuhn Loab International, Inc.
Bank of China Hambras Bank
Limited
Kuwait I n ter nati onal Inve s tme nt Co. s^Ju
Mitsui Trust Bank (Europe) SLA.
Samra Bank (Under w riters)
limited
Sumitomo Trust International
Limited
S. G. Warburg & Co. Ltd.
The Notes, issued at 1 00 per cent, have been admitted to the Official List by tha Council of The
Stock Exchange, subject only to the issue of the temporary Global Note. Interest is payable semi-
annually in July and January, the first payment being mads in January, 1 983.
Full particulars of the Notes are available in the Extel Statistical Service and may be obtained during
usual business hours (Saturdaysand public holidays excepted) upto and including 21 st July, 1982
from the brokers to the issue :
Hoars Govatt Ltd..
Heron House,
319/325 High Hoibom,
7th July. 1982 London WC1V7PB
NEW ISSUE
These securities have been offered and sold outside the United States of America
This announcement appears as a matter of record only
July, 1982.
US$50,000,000
Hapoalim International N.V.
(Incorporated with limited liability in theNakeriands Antilles)
Guaranteed Floating Rate Notes 1987
Uncond i tlonaUy tmdjnyvocabIy$amzmteed as to payrnent of praujpd and interest by
Bank Hapoalim B.M.
(Incorporated with limited liability in Israel)
ISSUE PRICE 100 PER CENT.
The following has underwritten the above Issue:
Bank Hapoalim (Cayman) Ltd.
INTERNATIONAL APPOINTMENTS
President
for Dunlop
U.S. company
• Hr Brian Simpson, who for
the past IS months has been
director, DunlopiUo Europe, for
Dunlop Limited, relinquishes
this appointment in July to
become president of DUNLOP
SPORTS COMPANY, UB. Mr
Simpson was made general
manager of DunlopiUo indus-
trial division in 1974. In 1978
he took responsibility for both
retail and industrial operations
on his appointments as general
manager, DunlopiUo UK He
became director, DanlopiUo
Europe at the end of .1980 when
a - new .structure - gave him
overall responsibility for co-
ordinating DunlopiUo operations
throughout Europe.
• CHROMALLOY AMERICAN
CpRP ST LOUIS, has appointed
Mr William B. Stevens as presi-
dent -an d Mr Nonna □ E. Alexan-
der was named- chief executive
officer, following the retirement
of Mr Frank P. Nyklel from both
positions. Mr Stevens wilt con-
tinue in his current past of
chief operating officer and Mr
Alexander will remain chair-
man. The appointments are
from July 1.
G Mr William Finlay will com-
plete his term of office as
Governor of BANK OF
IRELAND on July 3L He will
continue to be a director of
the Bank. Bis successor as
Governor, for a term of three
years, will *be Dr D. S. A.
Carroll, who has been appointed
a Deputy Governor in addition
to Mr Robert C. Lewis-Crosby.
Dr Carroll was formerly
Governor of the Bank from 1964
to 1970.
• Mr Marc Henrion has been
named executive vice-presi dent
wine production of THE
SEAGRAM CO., Montreal,
Mr Henrion, who is president
of Seagram European Wine
Operations, will continue to
supervise directly Seagram
wineries In Italy, Spain, Portu-
gal and -France and will remain
president of Barton and Gues-
tier, a Seagram subsidiary
which is France's, largest wine
exporter. Mr Henrion will con-
tinue to be based in Paris.
<B THE EL PASO CO„ Houston,
has appointed Mr D. W.
Cowan, Mr E C Holland, Mr
D- J. Maclver, Mr James
Malone, Mr H. A. Montgomery
and Mr J. T. Thompson have
been elected vice-presidents of
El Paso Natural Gas Company,
its natural gas transmission
subsidiary.
• Mr Jac Holzman, senior con-
sultant to Warner Communi-
cations Inc, lias been elected
chairman of PANAV3SION
INC, a subsidiary.
• Mr Gary L. Failor, seaport
director for the Toledo-Lucas
County Port Authority, has been
elected to a one-year term- as
president of the International
Association of Great Lakes
Ports (IAGLP).
• GUINNESS, MAHON & CO.
has appointed Mr Sharyax Aziz a
director. He was formerly of
First Boston Corporation of New
York and Project Finance UK
and has joined Guinness Mahon
to head a new subsidiary in the
U.S., Guinness Mahon Inc.
• From July 1 Mr Alexander
Rintoul has been appointed
representative, Sydney office, for
NORDIC BANK Nordfinanz-
Bank, Zurich, Copenhagen Han-
delsbank. Den norsk Creditbank,
Kama II is - Osake - Pankki and
Svensa Handelsbariken. Before
joining Nordic Bank Mr Rintoul
was assistant director at Amex
Bank, London. From September
Mr Haakon Sveaas will be
appointed assistant representa-
tive, Sydney office, with
particular responsibilities for
relationships with Nordic com-
panies in Australia and 'New
Zealand. He was previously
Nordic Bank's regional manager,
Asia Pacific, in London, and has
spent several years in the bank’s
offices in Hong Kong and
Singapore.
U5J41M»O i gOO-SERIE5 06
CELANESE MEXICANA, S A.
(Organised under the laws of the United Mexican States)
Six Month Notes Issued in Series
under a
U 5^1 25,000.000
Note Purchase Facility
Notice is hereby given that the above Series of Notes issued under
a Note Purchase Facility Agreement dated October 20, 1961, carry
an Interest Rate of P® r annum. The Maturity Date of the
above Series of Notes will be January 6. 1983.
July 7, 1982
By: Citibank, NA, London, Issue Agent
CITIBANK
- Jesup Sc Lainont
100 Park Avenue, New York, NY 1Q0T7
have^ pleasure * n announcing the opening of their
International Representative Subsidiary on 6th July 1982
Jesup & Lamont International Ltd.
3rd Floor, Pembroke House, 40 City Road. EJC.1
Telex 261238 Telephone 01-253 3810
Officers and Directors;
M- J. Hahns P. T. SotSriou J. Lawton D. J. Cooley
. J. Rawdon (US) H. Curd (US) Ronald Leeds (US)
Senior Executives: .
R. D. R. Robinson ALT. Smith A.CD. Slggfns
GflGfl©
ANGLO AMERICAN
COAL CORPORATION
LIMITED
(Incorporated In The Republic
of South. Africa)
The board of Amcoal announces
that the company has been
granted a provisional export
allocation of 4 million metric
tons a year of bituminous coal
for 30 years under the proposed
Phase IV A export programme
through Richards Bay.
This allocation is additional to
the company's entitlement under
the Phase II and Phase fit pro-
grammes totalling 6 million tons.
In addition, when account is
taken of the company's bene-
ficial participation of some 5
million tons in the export
entitlements of the Transvaal
Coal Owners Association and
the Anthracite Producers Asso-
ciation, the company's overall
allocation in the Republic's
export programme is IS million
tons annually. .
July 7th 1982
CGE increases
consolidated
profits by 5 %
By Our Paris Staff
COMPAGNXE General e d’Elec-
tricite (CGE), the recently-
nationalised French electrical
and engineering conglomerate,
increased its consolidated
profits by 5 per .cent to
FFr 586m ($86m) last year.
The results would have been
substantially higher without a
special charge against profits
of FFr 72m made for the newly-
introduced fifth week of paid
holidays, said the group.
Also excluded from the profits
figure Is a net FFr 55.5m
realised on asset sales, com-
pared with FFr 61m in 1980.
Cash flow amounted to FFr
2.2 bn against FFr 2J.bn.
CGE's profits are the highest
to have been declared for 1961
by any of the five industrial
groups nationalised under the
Government programme which,
came into force this spring.
Saint-G chain, the glass and pipe
manufacturing group, made
profits of FFr 450m, but the
other three — Rhone-Poulenc,
Thomson-Brandt and Pechiney-
Uglne-Kufalmann, all made
losses.
Sales at CGE, however, went
up by much more than profits,
reaching FFr 56J3bn, an in-
crease of 23 per cent.
Big loss for
Kleber
despite cash
injection
By Terry Dodsworth In Paris
KLEBER - COLQMBES, the
troubled French tyre com-
pany. lost FFr 2S3m (342m)
last year despite efforts to
trim costs and the Injection
of substantial new funds by
Michelin, its main share-
holder. TWs compares with
a loss of FFr 79m in 1986.
The roTnpMy partly blames
the heavy criticism brought to '
bear on one of its products
by a French consumer asso-
ciation for the continuing
poor performance in 1981. But
the losses also reflect the ■
slump in the French motor
industry last year, which led
to consolidated losses of
FFr 290m at Michelin, the
country's leading ■ tyre
manufacturer.
Last year’s crisis at Kleber,
the culmination of years of
unprofitable operations and
abrtive attempts to try to find
a stronger partner, finally led.,
to the takeover by Michelin.
The larger group subscribed
FFr 505m of new capital
through a rights issue which
left it In control.
Michelin has since drawn .
np a rescue plan which
envisages the injection of
further funds both by the
parent company and the State.
A total of FFr 600m is
involved, of which half will
come from the tyre group in
capital Increases of FFr 100m
spread over the three years
np to 1984. These sums are
to be matched by Government
aids and loans which will also
be made over to Kleber
The overall aim of the
reorganisation plan, which
involves reducing the com-
pany’s 8,000 workforce by
about 2,000, is to poll Kleber
back into profits by 1985.
• Transactions at the Bourse
were halted shortly after the
opening yesterday as owners
of small and medium sized
businesses protested against
recent Government policies,
writes oar financial staff. The
demonstrators said they were
angered by the Government's
decision to freeze prices and
wages over the next four
months
Lch
LEVERAGED CAPITAL HOLDINGS N.V. "1
Curasao, Netherlands Antilles
Notice of Annual General Meeting of
Shareholders
Notice is hereby given that an Annual General
Meeting of Shareholders of Leveraged Capital
Holdings N.V. has been called bij the Manager,
Irrtimis Management Company N.V.
Tha Meeting will take place at the offices of
the Company, John B. Gorsinaweg 6, Willem-
stad, Curasao, Netherlands Antilles on 30th
July, 1982 at 1000 am,
The Agenda, the Annual Report for 1981 and
further details may be obtained from the offices
of the Company or from the Paying Agent
mentioned hereunder.
Shareholders will be admitted to the meeting on
presentation of their certificates or of vouchers,
which may be obtained from the Paying Agent
against detivery of certificates on or before 23id
July, 1982.
Willemstad, 7th July, 1982.
INTI MIS MANAGEMENT COMPANY N.V.
Paying Agent:
Pierson, HeldringSe Pierson N.V.
Her e ngracht214
Amsterdam.
Summary of results to 31 December 1981
Total dividends of 5.60p per share for 1981 represent an
18JS3 d increase on the previous year
Order book again at record level • Improved liquidity
The company is in a very strong fimmeiiit p qf jriftn
Turnover
Profit before tax
Taxation charge (1980 credit)
Profit after tax
Shareholders’ fimds
Final dividend (per share)
Earnings (per share)
1981
3980
5
£000
£000
*
10,361
9,096
613
312
If
241
(233)
M
372
545
#f
3,853
3M7
3J35p
3.5709p
1238p
1803p
i
Tbc Annual Generali
heid at Cheater on 6 July IS
CopiEsofdieRqjonmaybedxantedfiomtbc
Secr e t ar y.
Thomas Warrington & soils pic
Gen^sl building and public wortacnnintaarx
K>Box26,Rossmore Road East
EflesmerePtat, South Wirral 165 3^1
Mti taafrrf naaflbfeiaadtf
'.W/
•■*» 5-£"'
iUrmncial T^e^.W^dne^y Juiy 7; iaW;
ji
-®S»- INTERNATIONAL COMPANIES and FINANCE
Bernard SSmon on how a home loan movement is bearing up under pressure
African building societies hit back
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SOUTH AFRICA'S 10 building
societies are . reeling from a
series of blows, which they are
unlikely to survive in their piv
sent form. They have emerged
as .the main victims of a. near
revolution in '.the consti/s
financial markets over the past
three years. This is the result
of .government policies., which
have made the cost oC money
increasingly - volatile and have
sharpened , competition ." for.
deposits. The rate on one^year.
deposits, . for ' ’ instance, has
jumped from 9 per cent to 1&
per cent in the past 18 months. .
The societies are' also, under
the scrutiny . of two offic ial com-
missions, and the eventual ways
in . which .they will conduct
their bu sin ess will pot.be known
until these .-poMMi-- their re-
ports, probably in the next nine
months. The de Kodc Commis-
sion. is reviewing -the .Sooth
African financial system.' in
general, and ; the da PJLeesis
Commission' more specifically
the work of the societies. ■
Thfe societies have mounted
a vigorous campaign, to cohr
vince their critics that they are.
still, a force , to be reckoned
with, both as' providers-of home
finance and as a secure and
convenient haven for invest-
ments.. A regular newsletter is
the latest tactic in their public
relations effort ". ...
The South 'AM am building '
society - movement is the world’s"
fifth, largest, after the UiL,
Britain, West Gehnany and
BraziL Assets - totalled . R14bn
($12Jbn) at the -end of March, -
and the .societies provide 80'
per cent ■ of the finance for "
purchases of hew homes. Their
4,800 brandies^ and- agencies
attract more than' 40 .per cent
of the public's savings to' non-
government institutions.
The " sharper ' swings - In
Interest rates have arises from
the' Government ~ loosening
controls on them, as ' part of
its efforts to mSke the economy
more responsive-, to. market
forces.. At ijte siw.tim^'s^ff^
competition 7 - hetwteert depissit-
tafctog - irsfitutionS notably
banks and building "-societies,'
has .arisen from more restric-
tive monetary policies.
" Building -- sodetitey;
fighting under a handicap.'
politically .sensitive — *■
tax-free schemes have faded, to
keep pace . jwitb the overall
surge . in ' interest rates, and
investors have Increasingly
moved -to, -higher ' yielding
fixed deposits. •-
Fixed deposits accounted for
25i4 per cent of the socles’
funds in April 1980. Two years
for. nine of The. past- 12 months.
Net withdrawals were Room In
February, for instance.
The shortage of funds and
low mortgage rates have forced
the societies to curtail new
loan* substantially.- They
advanced R2.5bn , to . house
buyers in the year to March,
SIXTH AFRICAV HlUDlVt. SOCIETIES
rate. has been kept weQ-taikffir
other lending - rates. '. tt"
currently ranges between. IS 25
per cent and 15.75 per cent^
depending - on the size- of tbe
bond, compared with banks!,
prime overdraft rate of 20 -per
cent... . ...
The Allied Building Society,
South Africa’s second largest,
at present collects a mean rate
of 142 per cent •
The maln concession made to
the societies is that, unlike the
hanks, they are' allowed 1 to' offer
tax-free investments carrying-
interest rates as low as 9J& pec
jcenL However, yields on the
later the contrfimted 332 per
cent... .
Meanwhile, the societies are
paying dearly for their attempts
in the late .1970s to augment
'their funds (drawn mainly-,
from small ravers) with invest-
ments from large institutions.
As competition.' dor deposits
Increased. - these institutional
funds were placed elsewhere.
The societies’ plight is shown
in recent statistics from the
societies themselves. With-
drawals exceeded 'total' inflows
m January and February, and
have been higher than new
investments in taxfree -shares
27 per cent less than during
the previous 12 months.
A (harp increase in house
prices has raised" the average
value of bonds, 'enabling the
sooetira to grant fewer loans.
The number oT’new mortgages
.was more that halved last year,
compared with 1980. While the
. investments of four ravers pro-
vided an average mortgage two
years ago, eight savers are now
needed to fund each loan.
The number of new mort-
gages granted was more than
200,000 in the year to March,
'1981, and down ,to 95,000 in the
year to last March.
The- strains of tighter
margins and a lower volume of
business are becoming increas-
ingly visible. The United, the
largest society, took over a
smaller competitor earlier this
year in -phat was dearly a
rescue operation.
The societies - normally
increase the mortgage rate only
after seeking the approval of
the Minister of finance. But
last month two of the smallest
institutions broke ranks and
pushed up their rates by 0.5 per
cent without official sanction.
“ Our need was greater than
our fear of the Minister,” says
Mr Ron Momford, -managing
director of .the Eastern
Province Society, one of those
involved.
Other societies are expected
to raise mortgage rates again
in coming weeks, to staunch,
pressure on their reserves.
To a certain extent, the
societies’ problems arise from
the business cycle, and will
subside when competition for
funds abates, probably towards
the end of 1982.
Bux in the new climate of
free markets amt fast-moving
Interest rates, the artificially
low mortgage rate stands out
like a sore thumb. Mr Jim
Dodds, chief executive of the
Allied Building Society, echoes
several of his colleagues: “I
think there's going to -be a far
more volatile mortgage rate in
future.”
A gradual cutback of
societies’ tax-free . investments
is tiie corollary of a freer
mortgage rate. Mr Dodds esti-
mates that the mortgage rate
would rise to 17 per cent if
tax-free benefits were with-
drawn now.
The problem for societies is
that as the mortgage rate moves
towards other lending rates,
banks will become increasingly
interested & home loans. One
banker predicts that property
wiH be the fastest growing
area of South African banks’
business in the 1980s.
Tornfi Compagnie Francaise
des Petroles
TOTAL Group - Compagnie Francaise des P6trdles in 1981
Annual Shareholders Meeting of 25 June 1982 -
8 Growth in exploration activities
• Good results in the industrial co-operation sector
• Shrinkage in refining and marketing operations
• Pursuit of diversification
fa his address, the president, M. Rene Grenier de
LBac, reasserted the Total group's de te rm ina tion to
accomplish its mission of purveyor of energy in ail
forms. This pre-supposes, he emphasised, that its
financial resources bo not affected by unjustifiable
and intolerable tosses and that the industrial role the
group Is to play be dearly defined. In this regard, he
remfaded the meeting of the group’s wilfingness to
trans fe r its assets in ATO and Chtoe Cfwnia on an
equitable basis.
The presidam also emphasised that the prevailing
political and economic uncertainty makes it
impossible to make any forecast of results that would
be vaidfortha whole of the current year. However, fa
-the refining and marketing sector, after a bad 'first
quarter; results are showing appreciable improve-
ment.
Growth fa ex pl or ati on activities
Outlays for exploration rose from FF1 .5 bffion'm
1 9 80 to FF2.5 bffionto 1 981 . Exploration was active
on recently acquired permits (Angola. Argentina,
Cameroon, China, Egypt) as we£ as on oider ones.
New discoveries were made and o t hers
confirmed In Italy, in the North Sea, in China, fa '
Ar g en tina , fa Noth America, .fa Egypt and fa
Cameroon. The production subsidiaries turned In high
performance finan ci al ly, mainly in Indonesia and in the
North Saa.
Good performance In the industrial co oper ation
Contracts signed during these fast years continue
to be fulffled fa Norway, Algeria, Abu Dhabi, Sudan
and fa Argentina. New contracts were signed with
IncSs and Venezuela.
Shrinkage h refining and marketing
Theyear 1981 wssmarkedbyanewand sizeable
fafloff fa oil emsumption which, with tlw inadequate
prices of products, brought about deterioration m
refining results, fa France as well as fa most of the
other European markets and fa the United Sates.
Added to the consequences of the overall economic
sltuerii on were the effects of price con trolspertiaterty
in Franca and fa Italy.
Pursuit of dhreraificatkm
Gas production coming to CFP in the North Sea, in
North America, fa Abu Dhabi and fa Austrefia again
. rose in 1 981 . The company continued its operations
in the coal sector where it acquired new mining
interests, particularly in the USA. In the uranium
sector, prospecting was extended in the Sudan and
Canada and new reserves ware acq ui re d .
Res u lts and dividend
CFP (parent company) net earnings amounted to
R=407 mfflion compared to FF993 mfflion fa 1 8 80 and
earnings distributed to FF409 mflbon against FF489
million in 1980. The total yield per sham came to
FF22.50 kfivtdend plus tax credit). Data of dividend
payment: 2 July 1 982.
1981 198& ' -
Sales 123.0 101.0
JnFrance 50.7 43.5
Abroad 7Z3 57.5
Cash Flow 6.5 9.5
Earnings 03 5.0
Nat Investments 5,8 6D
77m brochure "CompBgrmFrancaisadasPatmhs
and the Group ki 7957- ' « avadabfe, in French end
English, from the Service Department. 5 RuakBdtet
Ange- 75781 Paris Codex 16-Fnnca.
ir^S N.V.
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Japanese Ikknii^ in Australian dollar bonds
BY RldttBD C HANSON, m TOKYO
HIGH vifti Jl Austrafian dollar
bonds have replaced Canadian
and UB. bonds as tbe bottest
selling, foreign investment in
Japan.- In recent days,
Australian^ bonds . -may-- have
accounted for as' much as half
of Japan’s overseas investment
in securities. v •
The extraordinary boom to
LAFARGE
COPPEE
28, rue £mile Meoier, Peris T^e
Dividend for each sher^ of
Fr.Fr*. 100 in respect of
the year' ended '3lst J -
December 1981 . J9JJ0
Avoir fiscal (tax credit) ■ 930
Australian bond sales began to
April among the Big irmiranry!
companies when fimd managers
launched a search for- the
highest yields available on the
international capital market '
The companies were inspired
to do this after the Finance
Ministry informally asked for
re&ramts'-mr the- total amount
of funds to be newly inverted
overseas to reduce' downward
jj x pg fflnr tnoh^tier y^L insurance J
companies appear to be limit- :
ing^ overseas investment to a
jpeiling of 10 per, cent of freshly
available .- assets. .- The biggest .
portion of the Test of these
funds is, invested to Japanese
bonds, 1 which currently yield
about half the 16 per cent to 17
Gross amount
2850
The dividend- is payable as. from.
7th July, 1982, .agaSnst presenation
of coupon numbfsr 40 or of -the
Slcovam coupon ' certificate or
upon endorsement of the registered
certificate. The. dividend h payable
at certain banks -and credit institu-
tions in France, a list of the names
and addresses of. which is available'
at the offices of KTelriwort, Ben sort
Limited. ' 20 . Fenchurdi Street,
London, EC3P 3DB. The' new shares.,
issued in exchange; for the assets of
Soci6ti .Jndustrieile et Agricole de
la Somme are 1 rrov. eligible for thia
dividend. *- 'r
In general, sharehoidiera who are
not resident in France suffer with-
holding tax on. the dividend at the
rate of twenty-five- per cent, and do
not receive the avoir fiscal. But,. if
the benefit of the double tax treaty
between the United Kingdom and
France .can- be claimed by a share-
holder (and in general terms the
benefits of this double tax treaty is
only available if the shareholder h
a reside nt of the- United Kingdom-
and subject to tax- in the United
Kingdom on the . dividend), -(i) the
rate of withholding' tax .is reduced
to fifteen per cent. 1 and (ii) the
shareholder (being : an individual or
a company) may. be -able to recover
from the French . authorities the
amount of the. avoir fiscal reduced
by withholding -tax of fifteen per
cent,
Thus, in cases- where both, the
payment in .respect, of -tKe.' avoir
fiscal and 'the reduction of with-
holding tax to fifteen per cent, can
be claimed, shareholders -will
receive, prior to. the incidence of
United : Kinedom taxation, an
amount equal to, 1275 per cent, of
the dividend-;- payable . by _ the
Company, . being , the dividend
together with -the avolr_ fiscal as‘
both are reduced .'by withholdmg-
rax. ■■
Claims for -relief under- the;
double tax treaty -should be made
‘on the appropriate ‘fonns obtain-
able from the. inspector of Foreign-:
Dividend*. Inland .Revenues Block 2.
Lynwood . Road, Thames D’rtton. .
Surrey KT7 0DP. •
Shareholders who are in any
doubt as; to their individual tax
position are strongly advised to
consult their professional advisers.
PAN- HOLDING
Sodete Anonym* -
Luxembourg'
The unconsolidated net asset,
value as of June 30, 1982,.
amounted to . U5S153.96 per
share of US$50 par value.
This value ‘was before payment
on July 1st, 1982,- Of a sfividepd
of USS4 per share.
The consolidated, net asset value .
per share'amounterf-as-'of'June-
30, 1982; to U5S1 56.80.'.: •
per cent cbtqpbns Available to
Australia.
Australia’s main attraction is
the ! per cent or so gap now.
existing between, its bonds and'
those issued to . tbe U.S. and
Canada. The Australian dollar
. also, poses , somewhat less of an
exchange risk ■ ■
- Punch ases from April onward
have amounted to -roix»Hy
A$100m-200m . (U„S.?102m-
204m) r Securities companies-:
estimate that p u gxfaases to
ooold-be over A^LOOm. -
"What makes the bojtog stand
out, however, is: that purchases
of foreign bonds to genoaK
have been on the decline canoe
April, when the Finance
Ministry ' _• began, -. applying
pressure to help tbe yen. .
In March, net overseas bond
purchases. totaHed .U-SL$870m.
By May, the pace was about half
that and there .appears to hove
been a further drop last month.
Securities houses have so tor
kept the "volume of Australian
bonds on sale in Japan to well
below., the.' level' winch might
arouse the . interests of the
authorities. The bouses are . still
smarting fram^ sharp knuckle
rapping . from tiie Finance
Ministry over excessive sales of
zero coupon Eurobonds, which
have been banned since March.
Even so, it is estimated that
Japanese investors are now buy-
ing up to 15 per cent of the new
bonds issued to Australia. '
Steady progress by Kirsh companies
-BY OOR JOKAhP^BURlG CORRESPONDENT
tttf, QUOTED operating and
holding " companies ; in . ■ the
unqjaoted - Kirsh ‘ industries
group have reported sound re-
sults to their trading periods
which ended oitr April 30. :
Mrtcash, tiie group’s cash-
and-carry wholesale arm, earned
pre-tax- profits o£.R25m ($22m)
to the .14 months ended -April
30 on sales o£ RSSSm. In the
year ended February 28, -1981,
pre-tax- profit . was Ri9.7ta on
R541m. . .
. . Coki,-: which has a number of
Stakes to ' 'retailing companies,
earned a pre-tax profit of
R18.6m to : the 16 months to
end-April - on turnover .of
R551m.
On March 1, 1981. CoM
acquired 30 per cent of Dion,
a discount retail chain, and
53^3 per cent, of the furniture-
retailer, Russell Holdings. -
. In addition, on December 1,
1981,. Coki acquired a 49 per
cent interest in Union Wine, the-
liquor producer and- retailer.
Coki also holds about 40 per
cent of Greatermans, the Tetail
chain, on behalf of Kirsh..
..Coki. .has declared a .total
dividend of 11 -cents a share
from earnings of 30, 25 cents
a share, compared with no divi-
dend 'and no earnings
Metro corporation, which
owns 96 per cent of Metcash
and- 86 per cent of Coki, earned
a pre-tax profit of R42.6m in
the 14 months ended April 30
and has declared a total divi-
dend of 161 cents from per
share earnings of 392 cents.
- Kimet, whose main asset Is
50 per cent of Metro Corpora-
tion, had a pre-tax. profit of
R20.1m In the 14 months. It
has declared a total dividend
of 17 cents from earnings of
46w2 cents a share.'. Just over
50 per cent of Kimet’s equity
is owned by Kirsh Industries.
East Daggafontein Mines,
Limited
COMPANY ANNODN0EMENT
Tbe Board of Directors of East Daggafontein Mines, Limited announces that the Company
ha*,, subject to members^ confirmation and other conditions, entered into an agreement on
- June 29, ]982 with EgoU Consolidated Mines Limited ( w Egoli ”) in terms of which the Company
will acquire the. entire issued share capitals of two of EgpJi’s subsidiaries, namely Egoli Mining
Company (Proprietanr) Limited and -Johannesburg Exploration and Mining Corporation Limited.
- as- 'Weil as all of Egdll’s claims against those Companies.' As consideration therefor the
Company wil!_ pay Egoli R1 ,200.000 in cash and Issue to Egoli 1.000.000 new ordinary shares
after the proposed increase of capital . referred to below. The sole assets of these two
-'Cbmpahrei are a surface rights permit and certain-, dump . permits in respect of gold-bearing
slimes dams situate 'on the farms Modderfentein _76 IR -and . Daggafontein .125 IR- It is
estimated that these slimes 'dams contain 23 million tonnes at a grade of 0.4 grammes of
gold' per tonne, and 43 million tonnes at a' grade of 0<63 grammes of gold per tonne,
respectively. The acquisition will result in this Company’s total estimated' reserves being
increased to 139 , 000,000 tonnes of slimes. It is not possible at this stag* to say what effect thu
acquisition wlir have on the Company’s earnings. -
- An agreement .tas. subject- to. members’ confirmation, alio been entered into with Southern
Prospecting ( Proprietary) Limited (‘'Southern Prospecting ”} on June B. 1982. In terms
of this agreement the Company will, after the proposed increase in share capital, issue 300,000
new shares to Southqrq ■ Prinpectmg tn. exchange for the transfer of 336.015 shares in Bonanza
Gold Mine - f Proprietary) Limited (“ Bonanza ”) (representing J5 per cent of Bonanza's issued
- share capital) -and -cession of Southern Prospecting’s credit loan accounts of R3 1,500 -with
Bonanza. This will. increase the Company’s interest in Bonanza to 38 per cent. The agreement
.also provides for the appointment of Southern -Prospecting as technical advisers to the Company
-and Contemplates that Southern Prospecting wii], -be -represented. on the board of Directors
■ -of the Company. ■' . - - -
The.- Company has.- subject to members* confirmation,, also entered into an agreement on
June .8, 1982 with Transvaal Gold Recovery. Corporation -Limited (“TGRC") in which Company
Southern Prospecting has a 50 per cent interest, whereby TGRC has ceded to the Company
ah option tb acquire '-an interest in a sKmes 4am situated on the farm Daggafontein 125 IR.
The -consideration , for ’this option it: the Issue of 50,000 new shares to TGRC after the
proposed increase of-: share apitaV. ■ -
Members -wilt be 'asked to confirm -each oF these agreements at a General Meeting of members
to ‘be held shortly,.' - ' '
If wjll be necessary for the Company -to increase- hi share capital for the purposes of these ‘
transactions. V
A ^circular to members and a notice Of General Meeting giving further details will be posted
■ to: members. -
■ r ; " • • By Order of the Board,
1 Registered Office:. ARTHUR YOUNG AND COMPANY
..16th Floor, - Secretaries
Standard Bank House. per: J. D. G. CUNNINGHAM
■ Coe.' Eloff 'and "Albert Streets.
-Johunesburt.
Johannesburg- July, 7. 1982.
July 1,1982
750,000 Shares
CommonStDck _
($2,00 Par Va&e):
We received these shares, togctiieri^rt^oximately $6,700,000 cash, m exchange for
$309000,000 aggregate principal anaountof 7^k% CfaggKit^e'Siikirrihiirt^ I>.h ^ntiir pRr)rirr2nn4.
The First Boston Corporation Goldman, Sachs & Co.
Chesebrough-Pond's Inc.
Prince Manufacturing/ Inc
The undersigned miHoted ihis transaction, assisted in the negotiations
and acted, as financial advisor to Prince Manufacturing, Inc,
Kidder, Peabody & Co.
i
Oi 5
■J
'financial limes vveoaesaay * askm
-j
Crapanies and Markets
WORLD STOCK MARKETS
NEW YORK
Stock
JuFy
2
ACF Industrie*...
Avx’corp-7."-"
Abbot Labs
Acme Oleva
Adobe Oil ft Gas
Advmnoed Micro.
Aetna Life ft Gd
Ahmanaon iH.F.ll
Air Prod ft Cham;
Akzona — —•
Albany lot 35
AlbertoCutv. i 12 %
Albertson'* 32 T s
AlcanAlu minium 171a
A] co Standard. I 30 U
Alexander ft Ai-.| 24 >4
Alaahany Int 1 23%
Allied Corp...—..; 308 b
A llied Stores | 28%
301b
15 14
27ia
37
17
28%
175a
161 *
23%
•V
29>4
15%
AWo-ChalmerV-] 12%
Alpha Portd. ] 12ig
July
l
31
15%
27ia
96%
171,
383,
175*
155,
25 »a
345,
91,
205*
153a
243,
12la
35
171*
20s,
241*
2354
30k
287,
125*
121 ,
23
491,
211 .
ia
17a,
40k
373 *
283*
28
Aloes-. . 22i*
AmaL Sugar. ,._J 49 1 *
Amax. i 20
Amdahl Corp. : 18k
Amerada 18 U
Am. Airlines ; 171,
Am. Brands ' 395a
Am. Broadcasts 37a,
Am Can 28 k
Am. Cyanamtd.... 1 23 k
Am. Elect. Powr.l 16k j 16k
Am. Express 38k I 39k
Am. Gen. Iftance. 417, : 417,
Am. Hoist ft Dk... 12 I Ilk
Am. Home Prod- 37a, 1 37 ;,
Am- Hosp. Slippy, 43k | 43k
Am. Medical Inti . 205, | 21 k
Am. Motor, ■ 3 % ! 3>«
Am. Nat. Rmom .1 305a ; 30k
Am. Pstflna. 06 % I £6t.
Am. Quasar Pet. 7k '
7k
Am. Standard I 19k
Am. Stores. 43k
Am.Tal.ftTel 1 BOk
Ameteklnc 255a
Amfao > 21
AMP 80s,
Amatar 22k
Amstead Inda I 2Sk
Anchor Hockg-.i 14
Anheuser-Bh 1 BIS,
Archer Daniels... 13—
Armco 165* 1 17
23a,
44
SOT,
255,
203*
62k
23k
24k
14
613*
13
Armstrong CK-..J 15k
AsamoraOi)- 7k
Asarco. 21
Ashland Oil I 26i,
Asad. D. Good,.... 1 325,
Atlantic Rich I 37 k
Auto- Data Pra-.-i 23k
WOO 15%
4ver1nyti....— ... .j 25k
15k
7k
213*
25k
33
37k
23T,
161,
24k
Avnat
Avon Prod
Baker inti
Balt Gas ft El.—,
Ban Cal
Bangor Punta ...
Bank America ...
Bank of H.Y. — ,
Bankers Tst N.Y.
Barry Wright .
Bausohft LombJ
BaxtTrav Lab....
Beatrice Foods..
Baker I rids
Bell ft Howell
Bell Industries ...!
Bendfx
BenefieiBl
41k
235*
22k
24k
22
13k
17k
385*
27
14
411,
341*
19k
5k
197,
15
48k
16
41k
237,
23k
241,
207,
13k
17k
38k
271,
145,
41k
353*
19k
20k
15 k
487,
16k
Beth SteeL
Big Thee Inda
Black ft Decker..
Block HR.
B ue Bell
Boeing. .......
Boise Cascade...
Barden ._
Borg Warner.
Briggo Strata
Bristol-Myers....
BP
Brockway Glass.
Brawn Forman B
Brown Grp
Brown ft Sharp...
Browng Ferris....
Brunswick
16i,
163*
13k
273*
243*
15k
215,
32k
25k
24k
64
IBS,
14
32k
353*
12k
26k
20k
16k
16k
13k
283*
24k
15k
215,
52k
25k
24k
65 k
19k
14k
52 k
35k
12k
26k
20k
JIT,
19 k
415,
17
30k
35S,
Bucyrus-Erie
Burlington Ind ...
Burlington Nrthn
Burndy ......
Burroughs......... I
CBI Inds. ...
CB5 ..J 36k
CPC inti- 35 k
CSX 38k
Campbell Red L.| 9i,
Campbell Soup.^ 365*
Campbell Tags -1 255*
Canal Randolph.! 35i,
Can. Pacific — ..I 19k
Carlisle Carp • 20k
Carnation 31k
Carp Tech i 32
Carter Hawley ...f 13 k
Caterpillar 37k
Celanese Corp... 43
Cental 30
Centex I 2U*
Central ft Sw ! 15k
Central 8oya 10T,
Certain- teed |
Cessna Aircraft..;
Champ Home Bid'
Champ Int
Champ Sp Plug . 1
Charter Co )
Chase Manhattan I
Chemical NY ; 30
Chesels Pond..,.' 31k
Chicago Pneum.. 12 >*
Chrysler. ! 7
Chubb _| 361,
12k
19k
43
16k
32
36k
37
36k
383*
9k
37k
27
36 k
19k
23 k
313*
31k
Ilk
16
27,
12 k
81,
8k
40l B
13 k
37k
431*
305*
21k
16 k
107,
Ilk
16U
27,
12 k
8 k
.!*
295*
32
12 k
67,
36k
Cigna I S3
Cincinnati Mli .... 19k
Citicorp 25 k
Cities Service 647,
City Invest : 18k
Clark Equipment 20k
Clove Cliffs Iron..
Ciorox !
Cluoltt Pea by
Coca Cola. ;
Colgate Palm....'
Collins AJkman
181g
13k
167,
337,
171*
13k
Colt Inds 24 k
331*
19k
251,
66k
185*
20k
18k
13 k
167,
335*
171,
X3k
24k
Stock
July
2
Columbia Gas ...
Combined inf _
Combustn. Eng..
Cm with. Edison!!
Comm. Sateflte-;
309,
10k
23k
an,
52k
July
50k
177,
23k
2X1,
52k
Comp. Science...;
Cone Mills.
Conrae J
Cons Edison .....
Cons. Food,.
Cons Freight
Con. Nat Ga, \
Conmuer Power)
Cont Air Lines..
Conti. Corp„
Conn. Croup...
Conti. Illinois.!.!
Contl.Teleph.
Control Dob
12k
28
23k
17 k
345,
36k
241,
17
4k
23k
26k
22
16
25k
12
28k
24
171.
35
36k
24
17 k
4k
33 k
26k
22k
161,
237,
26
lok
13 k
451,
19k
28k
105*
131*
43 k
19k
Cooper Inds. 1
Ccora Adolph
Copperweld 1
Coming Glass.... 1
Corroon Black....! ...
Cox Broadcast's 247, j 25k
Crane- I 247, . 24k
Crooker Nat , 25k “
Crown Cork 24
Crown Zoll I 19k
Cummins Eng ....j 29 k
Curtlss-Wright...: 38
Damon 6i,
Dana 1 26k
Dart ft Kraft [ 51 1 *
Data Gen
Dayton-Hudson J
Deere
Denny's. I 24-5*
257,
23k
19k
29k
38
6 k
267,
51k
237„ i 245,
36k ' 363*
241, 24k
32k 33k
Stock
July
2
Gt AM. Pae. TeeJ 65,
Gt Batins Pet-!!!! 2
Gt Nthn.Nekoosaj 317,
Gt West Finance Us,
Greyhound | 13k
Grumman ■ 29k
Guf ft Weston....! 12a,
July
6%
21 ,
321*
116 ,
135,
297,
126 ,
Gulf Oil ' 27k
HaJI(FB) _...! 267,
Halliburton..
27k
27k
Hammermill Ppn 23k
Handleman -j 127,
Hanna Mining ....
Harcourt Brace.. 1
Harris Bancp
Harris Corp— <
Harsco. J
Heels Mining
Heinz (HJI... 4 317,
Heller Inti. 1 165s
Hercules ! 177,
Herahcy...- ! 415,
Heubletn ; 40k
Hewlett Pkd ! 405,
Hilton Hotels | 38k
Hitachi- : Sir,
26k I 27k
24 k
I3U
237,
24
16
8
24
127,
22k
15k
237,
. 241*
! 16
I 6k
32k
I 16k
I 177,
41k
38
42k
389,
I 23k
24k
Holiday Inns.. '
Holly Sugar I
Homes taka—
Honeywell I
Hoover |
Hoover (Jnl 1
Hormel Geo.V-...!
Hospital Corp — ,
Household Inti J
Houston Inds ; 18k
Hudson Bay MngJ 11
Hughes Tool
Humana
26k
33k
20k
66
101 ,
16k
197,
28k
18k
177,
245,
27k
481,
20k
67
10 k
!6%
203,
28k
18k
18k
Ilk
18k
34%
Dantaply Inti .
! 23k
Detroit Edison...
Diamond Inti-...,
Diamond Shank-
DiGiorgio
Digital Equip
Dillingham
Dillon -...
Disney (Walk
Dome Mines ...... .
Donnelly (RR1
Dover Corp
Dow Chemical ...
Dow Jones
Dresser
Or. Pepper _ '
Duke Power
Dun ft Bred- .!
Du Pont - 1 33
EG ftP -.1 16k
Ilk
39
20
87,
66
10k
211 ,
677,
6k
40
205,
207,
40k
16k
131,
21 k
666 ,
227,
Ilk
38 T,
20k
9 k
69k
10k
21
687,
61=
40k
21k
20k
40 J*
17k
13
21k
67
33
16k
Easeo....-
Eastern AJrlin
Eastern Gas ft F.‘
Eastman Kodak-
Eoton—
Echltn Mfg ....
Eekherd Jack —
Electronic Da
Elect Memorl
El Paso -
Emerson Elect.
Emery Air Pst...
Em hart.
Engelhard CorpJ
19
6 k
16k
72k
26 k
12k
187,
26k
4k
18
437,
7k
29 k
19
19
Jf
73k
281,
12 k
19k
271s
4
18
44k
7k
293,
191a
Enserch— .
Etmark- .....
Ethyl.
Evans Prod-
Ex Cell O -
Exxon— J
FMC. 1
Faberge — -
Fedders
Federal Co._
Federal-Mogul...
Fed. Nat Mart-
Fed. Paper Brd_
Fed. Resources.
Fed. Dep. Stored 42
Fieldcrest Ml
Firestone—.
1st Bank System
1st Charter Fin.
177,
44k
201 ,
77,
24k
271,
24k
145,
3k
23k
20k
10
191,
07,
21
Ilk
29k
10k
181,
443,
20 %
7k
24
27k
248*
15
3k
23 k
206,
97,
19k
Ok
417,
21k
12
29k
10 k
1st Chicago | 16k
1st City BankTex
1st Interstate—
1st Mississippi—
1st Nat Boston..
1st Penn.
Fiaons- —
Fleetwood Ent..
Flexi-van
Florida Pwrft I—
Ford Motor ...
Foremost Mck....
Foster Wheeler...
Freeport McM....
Fraohauf
GAF
OATX
GTE Corp
21k
23
77,
24
3
6
15k
19k
32 k
22 k
30k
Ilk
1ST,
187,
ilk
24k
27k
16k
21k
236,
7k
24
3
61,
15k
17k
331,
23k
30k
Ilk
16k
19 k
Ilk
24k
27k
Gannet
Gel co
Gen Am invest ...
Gan Cinema
Gen Dynamh
Gen Electric
Gen Foods ...
Gen Instruments!
Gen Mills
Gen Motors ...
Gen Pub Utilitl
Gen Signal
Gen Tire i 23k
Qanesco [ 41,
32 k I 32k
147, | 15 k
15 k
41
27k
63k
37k
341,
41
437,
47,
33k
15k
41k
28 k
631*
37k
34k-
4U,
44k
«7,
34k
231,
4k
Genuine Parts....! 35k
Georgia Pac. | 14k
Qeosouree
Gerbes Prod....
Getty Oil...
43i,
28k
49 k
Giddings Lewis.,.: 12k
33 r,
97,
lBk
357,
141,
431,
29
495*
13
34 k
10
19
Husky Oil .
Hutton (EF) — ...
1C Inds — ...
IU Int -
Ideal Basic lnd_.
Ideal Toy ......
ICI ADR
Imp Corp Amer-!
INCO -
Ingeraol Rand —
Inland Steel
Intel
Inter First Corp..
Interlake
Inter North
4k
24k
30k
107,
16k
12k
5k
47 ,
8k
39k
20k
30k
23
as
26k
IBM- I 60
4k
248*
29k
10k
16k
12k
I*
8k
39k
20
31
23k
24k
27
60k
Inti. Flavours I 21k
Inti. Harvester.... 4 k
IntMncome Prop, 9k
Inti. Paper. J 36k
int. Rectifier. 1 9t,
Intl.Tel ft T<d...!J 23k
Irving Bank- ' 35k
Jamas (FS). | 21%
Jeffn-Pllot I 24a,
Jewel Cos— ; 33k
Jim Walter. 2. *
Johnson-Contr_.
Johnson ft Jna.-.
Johnthan Logan.
Joy Mnf- J
K. Mart. |
Kaiser Alum. 1
Kaiser Steal—. _.
20 1,
20k
38k
14
22k
18
12k
175*
21k
4i,
9k
26k
10
23k
35k
21
S'
20k
19k
387,
14k
22k
18k
125,
17k
13k
7
9
26k
25 k
31k
Kanab Services..
Kaufman Bid—
KeyCorp
Kellogg;. ..J
Kennametal — —
Kerr-MoGee.
Kldde— I 20 k
Kimberly-Clark . 69k
King’s Dept St...
Knight Rdr. Nwm.
Koppors.... __
Kroehler.
Lanier Bus. Prod
Lsar-Sleglar
Leaseway Trans.
Ik
305*
13k
77,
34k
10k
145*
82 k
28
131,
7k
9k
26k
26
297,
207,
59k
Ik
30k
13
7k
34
10k
15
22k
27k
Stock
July
2
MGM I 6k
Metromedia -228
Milton Sredey ...1 177,
Minnesota MM...I 515*
Missouri Pae : 545*
Mobil i 2lk
Modem Merchg
Molucca- — j
Monarch
Monsanto-
Moore McCmrk-
Morgen (JPI-
Mctorolo
Munsinqwear- ..1 is
Murphy (GO > 137, ,
MurhrOIl- i lBk I 185*
Nabisco Brands- 34k I 347,
NaicoChem— 20k
10k
1178
16k
58
15k
50k
601,
July
, 6Jb
829
181,
52k
55k
22
9k
Uk
16
68k
15k
SIT,
607,
147,
13k
19k
Nat can- J *Sk
Nat Detroit -I 20k
Nat. DistChemJ 2Q 1 *
Nat Gypsum j 18k
Nat Medical EnC 137,
Nat Semlcductr.l 197,
Nat Service IndJ 24k
Net standard.... 9
Nat Steel !!!J 14k
J lfi Sm
Note mas...-....-.
NCNB ..
16k
12k
J5k
20k
206,
18
14k
20k
T
14k
16k
18k
Naw England B.
NY State E ft G—
NY Times-
Newmont Mining
Nias. Mohawk...
NIOOR Inc
Nielsen (AC! A. ...j
nl industries —
NLT !
51k
27k
167,
391*
32k
131,
27
46
18k
37k
517,
271,
16k
393*
32k
13k
27
45k
19k
57k
NorfoiKSoutheml 46k
Nth. Am. Coal-.... 277,
Nth. AnUPhiript) 36k
Nthn. State Pwr..
Northgate EXp_.
Northrop
N West Airlines.-
NWestBan corp-
N west inds
Nwestn Mutual..
Nwost Steel W.„
Norton -
Norton Simon—
Occidental Pet-
Ocean Drill Exp-
Ogdan
OgitvyftMrth.
Ohio Edison-.
Olln —
Omaric
Oneck..
26k
3
46k
267,
187,
8D
8k
161,
29
171*
181,
18k
18k
31k
12k
19k
14k
29k
45k
28
37
26k
31,
46
27k
lBk
49k
8k
16k
30
17
18k
187,
18T,
31k
12k
19k
147,
29
Outboard Marine
Overseas Ship.. '
Owens-Coming J 1ST,
Owens-Illinois —
PHH Group
PPG Inds
Pabst Brewing-.
Pac. Gas ft Elect
Pac. Lighting
Pac. Lumber I
23k
12k
231,
19k
331,
207,
83k
26k
16k
23k
12k
16
227,
19k
33k
20k
23k
257,
16k
Palm
Pan. Am. Air.
Pan. Hand Pipe-.
Parker Drilling ._
Parker Hanfn. ._
Peabody Ind j
Penn Central '
Penney I JO I
Pennzoll .,
16k
3k
23k
Ilk
16k
6k
25k
37k
323*
15k
3k
24k
Ilk
161,
5k
25k
37k
52k
371,
227,
85k
Lenox-.
Levi Strauss—
Levltz Fumtr.
Libby Owens FdJ 223,
Lily (E8) 1 657,
Lincoln Nat - 37k
Litton Inds. , 413*
Lockheed- 2 53
Loews. ’ 87
Lone Star Inds.... 1 803*
Longs Drug Strs.' 30k
Louisiana Land._i 877,
Louisiana Pac. ; 17
Lowensteln 1 857,
Lubrizol
Lucky Strs
M/A Com. Inc
MCA..
MacMiViaR !!!!—!!!
37k
25k
25k
22k
66k
38k
42k
631,
86k
21k
50k I 301,
27k
17k
13k
16k
59k
13k
167,
26
17k
131,
17
59
13k
Mac- ] 37 k
Mfcrs Hanover. ,.| 26k
Manvilla Corp....i 11s,
Mapco 883*
Marine Mid : 16k
Marriott j 33k
Marsh McLenn. J 30
Martin Mtta 23 k
Maryland Cup.. _ 36k
Masco J 32k
Massey Fergn. 17,
Mass MultLCorp.: 17k
Mattel U 14k
May Dept Strs "
27
37k
267,
Uk
287,
16k
if 6 *
24
36k
32k
Ik
177,
15k
27
28k
9k
17k
Gillette ‘
Global Marine..
Goodrich iBFi I
Goodyear Tire..... 24s, 1 241,
Gould- ! 25k : 23U
Grace 32k I 33
Grainger (W.W).. i 373* ; 377,
McCulloch 1
McDermott (.JR!..’ ...
McDonalds 1 71 1 ,
McDonnell Doug 1 56*,
McOraw Edison..' 27k
McGraw-Hill 48k
McLaan Trukg 14
Mead 16k
Media Ganl ■ 34k
Medtronic — .. ..j k
Mellon Natl .. 30i*
Melville ; 451 ,
Mercantile Sts....' 647,
Merclc 63s*
Meredith 583*
Merrill Lynch 25k
29k
9k
173,
71
35
27k
60k
141,
16k
341,
«6
30k
471*
65
65 k
591,
25 k
Peoples Energy-]
PepsIco
Perkin Elmer. —
Petrie Stores
Petrolane—
Pfizer—..
Phelps Dodge—
Phils Elect.
Phllbro 8afn IncJ 24k
Philip Morris..-
Philllps Pet
Pillbury —I
Pioneer Corp
Pitney- Bo w 03
Ptttston —
Planning Res'oti
Plessey
Polaroid-.-.
Potlatch
Prentice Hall
Proctor Gamble.
Bk
381,
17k
21k
14
64k
22k
137,
48k
30k
38k
17k
311,
14k
6k
78k
17k
23k
87
82
8k
38k
17S,
213*
14k
641,
22k
137,
241,
49k
30k
387,
173*
31k
143*
6k
80
17k
23k
27k
82k
; July July
Stock 2 1
Schiumbarger . ..' 35k 367,
SCM 23k 231,
Scott Paper ,141, 14S,
Seacon I 22 .
Seagram 1 46k . 46k
Sealed Power ..... 31k . elk
Searla (GDI • 36 ,!! 1 ?5! 8
Sears Roebuck ...; 18i, _; 19k
Security Pae [ 20 : 27k
Sedco I 297, 1 293*
ShiH Oil.! 34k ; 35k
Shell Trans..., ! 26k . 263*
Sherwln-Wms — 81k 1 «k
Signal- JWe 15k
Slgnodc.. 49k 1 49k
Simplicity Patt...
fflngsr
Skyline
smith inti — .
smith KilnaBeckj 63
pa
12 s,
147,
227,
Sonasta Inti — .
Southeast BanKg! 14k
Sth. Cal. Edison ^ 30k
Southern Co. 12 k
Sthn. Nat Res.... 25k
Sthn. N. Eng.Tel. 42k
Sthn. Pacific...— 30 -
southlands I 33k
S.W. Bancs hares 83k
Sparry Corp-.....: 21k
Spring Wills. I 25k
Square D 243*
Squ ibb • 34k
STC Brands Paint 247,
:
125,
lSk
S3k
«4k
11
127,
15
3Dk
12k
24k
42k
; 3os*
33k
12370
!«?
I Si
24k
28k
39%
31
14
18 k
Std Oil Ctlforma.,' 27k
Std Oil Indiana...! 39k
Std Oil Ohio- 30%
Stanley Wks. 14
Stauffer Chem—I 18k . —
Starling Drug SOI, | 20k
Stsvens .- 14% 1 14 k
Stokaly Van K i 30
Storage Tach—J 197,
Sun Co- 1 38%
Sund strand i_j 26%
Superior Oil- 1 29
Super Val Strs.... 1ST,
Syntax-...-... _.J 363*
TRW ; 497,
Taft j 31
Tampax..— 33%
30
20k
33
26k
277,
£ l «
37
50
30%
33%
Tandy ........ 271,
Teledyne ,.|
Tektronix —
Tenneeo ...
TasoraPct
Texaco ...
Texas Oomm. Bk!
Texas Eastern ..
Texas Gas Tm ...
Texas Instrim’ts
Texas Oil ft Gas...
Texas Utilities -.
Textron
Thermo Electron!
Thomas Bette —!
Tidewater
Tiger Inti
Time Inc
Times Mirror—
97k
813*
24k
161,
28>,
293*
47k
23k
047,
23k
21%
18%
143*
46k
21
7k
29k
41k
27%
98k
61k
24k
16U
I? 8
30
48k
ff"
21k
18k
14k
46
21%
7k
287,
42
Timken
Tipperary—
Tonka. I
Total Pet
Trane—
Transom erica..
Transway-
Trans World.
Travellers—
Tri control
60
7
17k
10k
34%
19
20%
19k
20k
67,
50 k
7
19k
iok
34k
19k
20
21
67,
Pub. Serv.EftG.]
Pub. S. Indiana—
Purax
Purolator
Quaker Oats—
Quanax. J
Questor-
RCA
Raison Purina—
Ramada Inns
Rank Org. ADR-.
Raytheon
Reading Bates -
Redman Inda.
Reeves Bros-
Relchhold Cham
19%
23k
27
33%
59
8k
13k
16%
13k
4%
9%
35%
13k
12
697,
10k
Republicbanc —| 28k
19%
23
301,
33%
38k
8k
13%
17k
13k
4%
2k
36k
13%
12k
6Bk
10k
28
Republic Steal...; 17k
Reach Cottrell.
Resort Inti A
Revco IDS)
Revere Copper..,
Revlon
Rexnord
Reynolds (RJI-...
Reynolds Mtls....i
Rite Aid-
Roadway Exp* ..
Robbins (AH)
Rochester Gas...!
Rockwell Inti—.,
Rohm ft Haas j
Rollins.- -..J
Uk
19
26k
8k
26k
9%
443*
20k
31k
363*
12k
13k
30%
49
127,
ff'
87,
25k
99.
45%
20
31k
36k
12k
13k
31k
48%
ISk
1
22
10
97,
17k
307,
41k
14%
Roim
Roper Corp
Rowan
Royal Crown
Royal Dutch
Rubbermaid
Ryan Homes
Ryder System — 1 28%
SFN Companies.; 177,
SPSTechnol.giei
Sabine Corp. ....
Safeco -
Safeway Store*..
St Paul Co* -
St Regis Paper..
Sante Fa Inds. ..J
Saul invest 1
Scherinfl Plough
13k
34k
32k
30k
37 j
22k
*5k
6%
19% .
211 ,
10
97,
41
14%
28%
17k
13 k
33%
33k
31
37 k
22l«
151#
6k
29k
Trl Conti nsntal— 18%
Triton Energy— Ilk
Tyler 14k
UAL- 17%
CMC inds 81,
Unilever N.V. 63
Union Camp 45
Union CartXdib—i 42
18k
Ilk
17k
45
Union Oil Cel
Union Pacific—
Unlrcvai
Urrtd. Brands..
Unt Energy ReeJ
US Fidelity G.__!
US Gypsum
US Home
US Inds
US Shoe
US Steel
US surgical- |
US Tobacco
US Trust
Utd.Technolffs_
Utd. TeUoomms.
Upjohn....-.—..-
VF. J
Vartan Assoc*. ._
Vernltron.
31%
12k
7k
29k
36k
27%
11k
10
33
18%
21k
44
343*
56k
17%
39%
467,
35k
9
33
8
50
10
22
35
38
Virginia EP .
Vulcan Matris ....
Walker (HI Rat-.
Wal-Mart Store*
Warn am —
Warner Comm*-
Warner-Lambt
Washington Post
Waste Mangt
Weis Mkts. j
Wells Fargo.
WJ»olnt Peppi.,,,
Westsrn Airline.
Westn. Nth. Am..
Western Union...
Westinghouse —I
Westvace J 20k ,
Weyarhaauser ...| 24t, j
46k"'
as
307,
45k
20
35k
277,
26k
21k
23%
5k
8k
28k
25k
41k
13
62
31
471,
20
35 k
28k
27
20 %
23k
5%
-2 s "
28%
25%
20
241,
Wheelobratr F...
Wheeling Pitts
Whirlpool ,
White Consottd-;
Whittaker
William* Co..
Winn-Dlxia Str—i
Winnebago J
Wise Elec Power! 30k
Woolworth 167,
: •»
Xerox
Yellow Frt Sy, ...
!
Zenith fUdio. . -!;
2Bi, ] 291,
13k ■"
297,
24%
21i,
15%
86%
6J*
13%
30k
24k
21%
16%
867,
8k
31
19
- , 33k
87# 9
31% 317,
151, ! 13k
147, ! 16
11 : Uk
Indices
NEW YORK
-DOW JONES
.July
2
July 'June
1 ! 30
Juna
29
June 'June
28 25
1982
Since Cmpirt’n
High Low High ■ Low
elnduetr'l, ,796.99 8H.27I 811.93' 812.21 8M.G880i.Q8 882.52
I • , i4M> .
H'meBnd*. | 67.90' 68. IS. 67.94 66.15 68.39 68.46'
Transport. 314.M317 .m! 320.69’ 319.27 513.53 315.36 Om/as !
* 7r1i
Ut ill tie 1M. 17 1 06.68 107,70 100.06' 106^2100^7 119.85]
TradlngVol; ! U, * >
000 - 1 46,780 47.900 65,260 46,960 40,700 36,740 —
. 1 . 1 i
a Day s high 803.18 low 792.62
41.22
'&7.S2)
788.62 1061.70
■ 18i6) (11.1,73)
63.67 —
( 12)21
603.73 « 447.38 12.52
(21,6. 116'4,-Bl) (9.7,32)
105.61 168.52 18.5
1 ISM 1 120,-4.99) <28.4,42)
Indust’l div. yield %
June 2S ■ June ib • June 11 Year ago (Approx
6.96
7.06
6.90
5.S0
STANDARD AND POORS
July
2
July
1
June :
30 :
June '
29
June
28
June
25
19B2 Si nee Cmpirt’n
High Low ' High Low
tlndUBt’IS ... 120.14 121.36' 122.42 126.29 123.44- 122.09 137.28 '
! (4(1. :
*Comp'*To. 107.85 108.7l! 10S.6T I10J21' 110J6 109.14 122.74
: 1 ■ i4/l)
118.41 , 160.96 5J&
(8/S* 126.11(80 130,6/32)
107.90 140^2 4.407
(21.6) (28/11/90 (1,6.32)
lndust '1 div. yield %
June 30 June 23 June 16 'Year ago (approx
5.91
5.89
5.B7
4^6
(nduat'l P.E ratio
7.70
7.76
7.65
9.27
Long Gov. Bond yield
13.75
14.02
13.66
13.27
NY. S.E- ALL COMMON
July July June Juna
2 1 30 1 29
19B3
Rises and Falls
July 2 July 1 June30
High Low
61.9962.51 63.0265.28
71.20
(4/1)
61.73
Issues Traded 1.798
Rises 506
Falls 857
Unchanged ...... 435
New Hlght
New Lows -
1,800
460
' 910
430
14
59
1,855
801
603
451
29
. 37
MONTREAL
July
July
July
June i
30
1982
High
LOW
Industrials
Combined
292.72! »2^S|
218. 1 1 ; 237,84!
id
id
2*4.02,
253.61;
932.79 (4.1)
iI8.l» (4.1)
249.66 (2li6)
257.27 (21.-6)
TORONTO Composite, 1359.B; 1369.9: id ! 1S66.8 1 IKB.5 74.1) 1555.7 ,21/61
NEW YORK ACTIVE STOCKS
Friday
Stacks Closing
Chengs
en
Stocks Closind
Change
Sony
traded
.... 1.973.100
price
13*
day
- V
Schlumborger .
traded
507,800
pries
35\
day
-I 5 *
Tosco
... 708.000
13*i
-r *»
Inti. Min
492.900
25\
- 7 »
Euon
.... 652.700
271,
- **
CibC0rp
432.900
2ah
Superior Oil
... SSI. 300
29
+1%
Amor. Express
411.600
38*i
-IS
Karr McGes
... 630.500
31%
+ 1 7 .
ATT
381,200
SO**
- h
Jlriy ! Juj^r '
July i July
2 . 1 :
High
1982
Low
AUSTRALIA .
All OrcL«M/Ml
Metal ft Minis. (1.1 (Mi
4&7J . *S0 J |
: 514.2 ) 518.4 1
483.0 | 478J .
521.8 ! 555.8 1
585.6 (4/1)
425.1 (6/1 1
' 456.8 (10/51
508.8 (25/91
AUSTRIA
credit Aktlan (2/1/82)
48.77! it*l'
48.16: 48.94
68.88 (4/1)
. 48.68 £8/8)
BELGIUM
Balg/an SE (J1/12/B5)
82.97; 82.55
i 1
92.54 82.44
102.45 (6/4)
88.42 (8/1)
DENMARK ,
Copenhagen SE (1/1(78) 1TB4T 11D.86' 111.14 111.68 18E22 (Kri) I 109^5,-16/6)
FRANCE
CA3 General 131/12/81) —
Ind Tendance (31/12/81) 110.4
91.30 97.6
109.60 199.7
96.4 '
108.1 1
117.8 n2/B)
124.8 il2/S>
86 JB (4)1)
87.7 (4/1 1
GERMANY
FAZ-Akben (51/12/68) 224.8
Commerzbank(Dacl865} 680.0
224.78 223.63' 226.47
686.7 t 688.6 ' 391.4
288.45 ft/41
729.8 (5(4 1
219.85 (IBM)
888.7 (11/1.
HOLLAND
ANP-CBS General (1870)
AN°-CBS Indust 1 1878)
683
68.9
65.4
nj6
to* 1
67.9 .
88.4
67.1
86.0 nO/5!
74.6 (10/6)
04.0(9/11
98.2(4/1}
HONG KONG
Hang Seng Bank fJ 1/7/B4 1288.88 1266.7 1 1274 JO'
(O) 1446JD (12/1) ; 1129.85(9/81
ITALY
Bancs Comm ltaIJII72)
15^40; 154J7 1 165.99' 154.79: 212.96 (19)3) i 153J7 (29/6)
Japan 4 *
Dow Average (16/S/49)
Tokyo New SE >4/1/88)
7019^57081.10 TOM J7 7179.88'
526.26 550.16: 530.66 53BA3
7929.55 (27/11
683.29 (27/1 1
8B89.E5 717/81
520.79 (17/81
NORWAY
Oslo SE (1/1/72)
115^4| 11S.6 11B-39 115.91 18049(28/1), 109.12(1/4)
SINGAPORE
Straits Times (1966)
885.11 88948 706.681 79840 810.78 (trl) | 887.41 (3/3)
SOUTH AFRICA
Gold US5lj
Industrial (18581
3484
510.0
350.4 j
512J i
688J
711,7
rt/11
iWl)
MU (21/8)
607.6 (23/8)
SPAIN
Madrid SE (M/12/81)
»■»' «1.M; 0l-»! 9849 ! 197.46(9/2) i 8043(8/7)
SWEDEN
Jaeoboon ft P.
(1/1/S81 387.B8; 69S40| 582471 .63148, 83942 (22/ T) ; Bgs.jj
SWITZERLAND
swim, BankCpn.'Zl/U/Mv 241. 1 1 241.4
241.6 ' 243 J 288.1 (11/1)
241.1 (8/7)
WORLD
Capital Inti. (1/1/78)
— | 124.8 j 124.2 ! 125.B j 147J (4/11
583-7 <21/81
f“) Saturday June 26: Japan Dow 7203.90. TSE 533 A0.
1 *? n * n lmllc88 aw 100 Australis All Ordinary and Mstlln
500. NYSE AH Coramon— 50c Stsndsid snd Poors— tOs snd TemetelZi Offv'rt,-
sst named bssed on 1875. t Excluding bonds. $*>0 Industrie**
Industrials Plus 40 UtJWss. « Hiuaaiek ead 20 TnnspuISr '
u Unavjiiabls.
f 400
dClossd
Banks weak on Wall St
BANKING SHAKES were among THE AMERICAN SE Market
the weakest issues, as prices 'Value Index was- off -253 to
declined moderately in light
trading on Wail Street yesterday.
By 1 pm the Dow Jones Indus-
trial Average was eff 4.75 to
792.24, the Transport Index shed
3.15 to 311.45, while the NYSE
All Common Index dipped 47
cents to S6L52. Declines topped
advances by almost a two-to-ooe
margin. Turnover was 28.19m
shares.
The most pressing concern of
investors is growing belief that
interest rates will remain high
over the near-term. Analysts said
many traders also believe that
Corporate earnings will make
very poor reading when results
for the June quarter begin
appearing.
Analysts said the market will
probably hover around its
present level until it sees some
movement in interest rates.
In the Banking group. Conti-
nental Illinois fell S2| to $19|
after saying it expects to report
a loss for the second quarter.
chagj Manhattan dropped SI} to
$39-
Chrysler eased Si to S65 — it
reduced prices on its Dodge Colt
and Plymouth Champ models.
Kerr-BXcGee slipped $2? to
$292, after advancing more than
$1 on Friday on takeover
rumours.
H. H. Robertson surrendered
$3} to $30}.
However, takeover target
Giddiiog and Lewis, delayed in
opening, was indicated sharply
high er on the NYSE. It closed
Friday at $12{. Canadian-based
Amca International is offering to
acquire Giddings and Lewis at
$25 a share. The value of the
transaction is estimated at
$26Gm.
Allied Corporation fell $li to
$29, while American. Express
surrendered $1} to $3$}. Getty
Oil, another weak performer,
lost Sli to $47}.
245.85
shares.
in a volume of 2 . 12 m
Canada
Slightly lower at mid- session
with Gold issues pacing the
decline. The Gold Share Index
came back 80.9 to 15082.
The Toronto Composite Index
eased 2.6 to 13572, Oil and Gas
9.6 to 2366.5. Utilities 0.46 to
1SL51 and Papers 0-40 to 128.14-
But Metals and Minerals put on
4.4 to 11932 and Banks finned
127 to 250.38.
ket is focussing not only on prior
r umo urs that the company may
be under investigation by the
FBL but also on the poor growth
in the market for the company s
artificial blood.
Machineries, Steels. Motors
and non-Ferro us Metals also
weakened. _ . ,
Government Bond s remained
level, with ihe market finding
neither buyers nor sellers.
Tokyo
Hong Kong
Stocks closed steady to slightly
firmer, after some fairly strong
buying in the morning which
did sot continue into the after-
noon. .
There was interest in Cheung
Hitachi’s trial on charges of Kong, up 10 cents at SHK15.00,
and Hutchison Whampoa, up 30
cents at $HK15.70.
a broad front in a session which
was interrupted for abont an
hour - by a demonstration.
Trading resumed later
although volume w.» thin.
Advances led declines by 87 to
44 in the French section and by
37 to 20 among Foreign Issues.
- Apart from some isolated
weak spots among Banks, Engi-
neerings and Electricals, gains
predominated in practically afi
other sectors.
Making good progress is the
Foreign section were Chase Man-
hattan, Deutsche Bank, Sony,
Goldfields. RTZ and Outlines.
Matsushita, Harmony and Nestle
were exceptions to tho rule.
Germany
Most
easier
America were not available
dosing prices for North
for this edition.
stealing IBM secrets continued to
haunt the Stock Exchange Tues-
day, driving the Nikkei Dow
Index down 61.54 to 7,019.56 on
trading of 270m (140m) shares.
Hitachi further declined Y15 to
550 and dragged down Blue Chips
with it across the Board.
The Hi tachi case has darkened
an already cloudy economic sky,
said one trader. Investors want
to sell rather than face the
uncertainty, he added.
The downward slide has caught
up with some of the “ large ”
speculators. One major investor,
hurt by tbe recent downturn, has
been selling millions of shares in
NEC, Fuji Film and Hitachi, he Dresdner
said.
In line with the market's
p essimism, one major Securities
firm has predicted that the Dow
Index will drop to the 6200 level
by tbe end of next week.
Fujitsu bucked the downtrend
rising Y1 to 700 on its announce-
ment that it has developed what
it called the world's fastest pro-
cessing computer for scientific
use.
Other stocks that withstood the
downward pressure and rose
were largely Speculative issues.
Despite a general decline among
Pharmaceutical shares, for
example, a trader noted that
Dalnippon Pharmaceutical put on
Y30 to 1270.
Green Cross, gave way to Y70
to L8S0, indicating that the mar-
Switzerland
closed
about
leading shares
as uncertainty
efforts to rescue AEG depressed
the broader market
But foreign buying at the
lower levels, spurred by the
cheaper mat*, p idled shares off
tbeir lows. AEG closed at DM30,
down DM 3.10. with dealers citing
the lack of positive news from
tbe latest creditors' meeting.
Banks were weak because nf
their involvement with AEG.
fell DM2.10 to
DM 134.80. Commerzbank DM1.50
to DM 13320 and Deutsche
DM 0.20 to DM 265.10. though all
came off their opening lows on
Foreign demand.
Prenssag. however. rose
another DM 1.10 to DM 189.30 on
continued demand ahead of its
dividend payout
In .otherwise steady Engineer
ings, Mannesman!! lost DM 1 to.
DM 133— it is persistently
mentioned in connection with
AEG.
The Domestic Bond - issues
retreat continued triggered by
rising Money Market rates.
Prices extended (heir down-
trend as buying dried-up amid
the dollar's firmness and an
announcement that Consumer
Prices in the city rose 7 per cent
in June from a year earlier.
Buyers stayed away for the
most part, with volume in Swiss
shares failing back to 189 trans-
actions.
Declines were concentrated In
the Bank, Finance and Chemical
sectors.
Foreign stocks were generally
higher in tight trading.
Milan
Lower in thin trading, with
investors reluctant to commit
themselves because of the
political and economic situation.
Johannesburg
Paris
French and Foreign
prices were marked up
share
across
Gold shares closed steady at
their slightly lower opening
levels in limited trading, reflect-
ing the little changed Bullion
price.
News a White Miners’ strike
threat has been averted after
employers and Union leaden
agreed a compromise pay deal,
came too late to affect the
market
CANADA
Stock
July
&
July
2
AMCA Inti
18%
16%
AbJtibl
16
17%
Agnico Eatpa
6.87
6.62
Alban Alumin. —
221,
211,
Algoma Steel
23%
23%
10%
10%
Bk Montree L.....J
17%
17%
Bk Nova Scotia —
20%
20%
Basic Resources.
2.48
2.48
Ball rtenerie
17%
17%
Bow Valley
14%
14%
Brasean A —
13
13%
Brtnco
3.50
3.30
B. C. Forest—..
7
7%
CIL Inc
18%
18%
CadlllacFaJrvlew
6%
6%
81,
8%
Can NW Energy.
22%
22%
Can Packars..— .
29%
29%
Can Trtuoo
21
21
Can Imp Bonlc-.
18
18
Cdn PaciOo.—
26
*5
• Can P. Errt l
13%
■ 13
Cen Tlra.__._l.
33%
33%
21%
21%
ComincO.
34%
34%
Con* Bath*t A. ...
14%
14%
Cont Bk.Canada
6%
6%
Cotaka Rss
3.25
1 3.50
Certain
5%
2.65
2.60
Denison Mines...
16
16%
Dome Minas.
8
3%
Coma Pstroluem
5.50
5.87 '
Dom Foundries..! 27%
27
Dom Store*
14%
13%
Domtar ...........
15%
15%
Falcon NickeL...
35%
36
Qonrtar
11
11
Gt Wert Ufa —
2.05
2.05
Gulf Canada.
13%
13%
Gulf Stream Res.
1.85
1.86
Hawk Sid. Can .J
7%
7%
Hollmgar Argus..
26%
28%
Hudson Bay Mng
141,
14%
Hudson's Bey....:
151,
15
Husky Oil .1
6%
9%
Imasco
38 i a
58%
Imp Oil A.
22 7 R
227,
!nco._ — 1
107,
107,
!ndal_ ;
9%
9%
Inter. Pipe. _|
16%
16%
Mac Bloedel
17
16%
Mark* ft Spa near
7%
7%
Mastey Ferg.
2.35
2.36
McIntyre Mine*-
22%
23
Mitel Corp.
22%
21%
Moore Corp
35%
35
Nat Sea Prod* A
5%
5%
Noranda Minas.. .j
11%
lifif
Nthn. Telecom...;
46%
46
Oakwood Pat [
9%
9%
Pacific Copper...!
1.26
1JZ0
Pan oan Patrol...]
65%
65
Patino- I.......!
16
16
Placer Dav !
11 T, ;
11%
Power Corp. !
9
9
Quebec Strgn 1
1JK) ,
1.90
Ranger Oil..., ;
6% ’
6%
Reed Stan ha A....I
.11%
U%
RIoAlgom—
27% ‘
27%
Royal Bank (
19 % ;
19
Royal Truaco A...;
11 % 1
11%
ScaptraRes- !
5.37 !
5.50
Seagram 1
59 %
59%
Shall Can OIL......
167, !
16%
Steal of Can. A....'
17% 1
167,
Tack B...._ -.1
5,12 <
9.25
I Texaco Canada-i 26%
26%
1 1 homson News A;
18%
18%
1 Toronto Dom Bk.: 22% 1
22%
Trans Can Pipe ... 1
16% 1
16%
1 ransMntn.OHAJ
6%
WalkeriH»Res-..J
16% 1
16%
WestcojLBt Transl
12 1
11%
Weston (Gaol 1
27% i
27
AUSTRIA
1
July 6 "| Price J+ or |
; 1- * 1 ~
208 1
Landerbank— ....j
180 i
Pari mooter-.
261 !
—'ll
Samparrt,
68 !
Steyr Daimler — J
145 |
Vettschcr Mag
174 |
+4
BELGIUM/LUXmBOURS
July 6 i price
.
hot H
j Fra.
— R
ARSED „.| 1,Q80!
Banq Int A LUX...! *.100 .........
BakoertB-,
Cimant BR».
CoeKerill
EBES,_
EleetPObek^,...
Fabrique Nat — >
GJt Kmo,„
GBL (Bruxlj
Govoert
Hoboken
intercom
Kredletbank
Pan Hide*..
8,140 +tq
1.450, +8
133) +2
1,615) +10
4,060' -25
8,445 -80
2.673 420
1,373 +8
1.7451
2,9501 —10
t500 +2
4.510
6,050 1
BELGIUM (continued)
July 6
Retro fin a
Royal o Beige
Soc. Gen. Banq J 2/0»
Soc Gen Beige...
Soflna^...— J
So Ivey !
Traction Elect _i
UCB
VioWaMont
Price
Fra.
».480i
5,070]
1,153
3,376)
s!b20
1^
+ ot
—10
420
—40
44
-26
—CO
420
-6
4 10
DENMARK
July 6
+ or
Andelobanken— i
Baitica Skand ....
CopHandelsbanlq
D. Sukkerfab J
Danske Bank
Eaot Asiatic 1
Forende Barygg.; 630/4)
Fora rode Damp.’ 401
GNT Hldg ! 228
Jydske Bank. | 176
fiord Kabel J 126
Novo Ind... 1 1.696
Raplrfabrlkkar J, 79.4|
Privatbankan ....
Provf nsbankan „J
Smklth (FT) !]
S. Be rend sen..
SaBgBfaaa
FRANCE
July 6
Emprunt 1975 1,699
Emprunt7g197s!!] 6,250)
ones*. r —
Air Uqulde
Price
Fro.
3^20j
463
Aquitaine- J 120.5|
npa — |
Au Printempa-
136
-f-or
BKJ | 464
621
& 1 !!
640
530
139.5]
166
280
121.61
75.51
44
4 1
435
47
49
44
42
Bouygues !
BSN Gervals_
Carrefour^ i
Club Med Iter.—.
CFAO!-
C3F( Thomson)...
Cle Ban cal re ...
Cle Gan Eaux
Coflmae |
Crauoot Loire ;
CFP — 111234
Dumaz — ...» I 1.115!
Gen.-OcofdeRtalj 412 I
I metal 52 i
Lafarge - 8l6.ll
L'Oreal 891' -i
Legrand... ;.! 1,460 +24
Machine* Bull 28.9, —141
Matra- j 1,480 +20
Mlchalln B 626 , +16
Mo«t Henne*ey 734 : ‘ + 10
Moulinex 53. 1- . —0.8
-0.9
40.2
+ 86
-3
+ 1.9
+0.9
Pernod Rie&rd.J 348 i
Perrier...... ;.J 161.6 1
Peugeot-SJL. ...... 1S2.9|
Poctaln I 125 ,
Radiotech i 259 i
rta 890 ■
-2
-1.9
+ 4.7
279
660
726
1 176
+2
+2
GERMANY
July 6
Pnca
Dm.
+ P*
AEG-Talaf_
Allianz Vara.
BASF
j.of"
BAYER
30.
466 |
114.9,
-3J
Bayar-Hypo
Bayar-Veraln...-...:
.. 109 M
212
274.5!
-0.9
—
4 1
+ 1.0
BHF-Bank.^
BMW j
204
. — 3
199*4
-1
179
-OJS
133.5
—1.6
49.2
+2.6
304
+ 0.5
210
120
187.5 -ft6
265.1
—0.2
16B
-3
134.8
-2.1
182.2
-0.3
62
Lufthansa.—
MAN.-:
Manneemann „..|
Mercedes Hlg„...
Metallgeseall
Muench Rueok—!
Preuesag ;
110 . 1 !
26.5
413
142
213
175.81
186
56
65
287
65.5;
166
133
267
200
640
189.31
—US
- 0.6
-0.5
HOLLAND
July 6
Price
+ or
Fix.
AOF Holding
76
—0.5
Ahold—
AKZO
80.1
23.{
276
84
46
-0.6
ABN MeiBM.i.ei.ee
AMEV
AMRO
+53*
Brodero Cert—.
161
—1
BoakalisWesterr
37
Buhrmann-Tet-
35.2
—0.2
> Caland Hid t
89/
+ 1
Elsevier NDU
148/
+ U5
Ennla ................
121
+0.6
74.1
70
-0.1
56J
+0.1
Hoog ovens
Hunter Douglas.
14/
8J
+0.3
-ai
Int MuHer.
17/
—0.3
KLM-
88.1
+0.4
_ Naardan-
Nat Nad cert....
116J
— 0.3
+2X1
~ Nad Cred Bank-
27
+ 1
•' Nad Mid Bank-.
114.2
+2/2
' Nad Lloyd
11U
-0.3
OcaGrinten— —
104/
+0X1
j' Ommaren (Van).
Sftl
-0.6
Pakhoed.
37.e
—0.4
Phllilpa.:
22. £
+0.3
> RUrvSohalda
2BJ
+02
200
-0.1
_ Rodamoo -
124/
+02
196.E
+ 0.7
Ro rente. —
163
+ 0.1
„ Royal Dutch-....
85/
+ 12
_ Slavenburg’a
79/
-1
Tokyo Pac Hg ...
188
Unilever... .— ...
143/
+0/J
106
—2
■ Vmf Stork —
1 43
-0.5
VNU
; se
+0.2
West Utr Bank..
;• 66.e
-2.6
ITALY
July 6
Price
+ OT
Ure
* Asslour Gen— ...
126,800 —200
’ Banea Com’la —
50,690 —HO
BastogI Fln._
96
Cent rale
2.190 —140
Credito Varealna
Rat
5.400
1,612
28%
2,110
—160
+68
+3%
—10
—680
-2
Invert —
Montedison — ....
Olivetti
85.76
2,185
2,110
1.234
612
—16
Pirelli Co
Pirelli Spa
—19
ToroAtalo—
—320
do. Prof
NORWAY
July 6
Price
+ or
| JKronar
Bergen* Benk
105 ’
—l
106
Credltbank—
131
46 /J
300
270
Kosmos.... —
Norsk Hydro
—2““
Storebrand
160
-6
SWEDEN
July 6
Price
Kroner
AG A—
A/ra-Lavai.:
ASEA
196
204
182
Atlas Copco.
Solid an
CaUulosa...
Electrolux B- .
Ericsson
108
165
213
82
225
IT
E**eite(Fraa).
144
+1
Fagarsta
134
—1
Fortia (Free)
146
Mo och Dom
104
Saab-Skanla...-.
132
Sandvlk (Froa)._
171
+i ""
Skandla-
490
Skan Enswida
214
+2
SKFB.- |
114
St Kopparbarg...;
Sven Hande%bn.t
270
104
+"£
Swedish Match-!
107
Volvo (Free)- 1
148
i
1
SWITZERLAND
July 6 |
Price !
+ or
l
Fra. |
117.61 —22
*1jS
—8
+ 0^
+0 A
-2
Rhein Wert Eject! 168
RoaonthaT.
Sobering
Slemen...
Thyseen-
Varta.
V —
Voraln-Wert!!!’J !.
Volkswagen
255
271
217.5
82^
344
126
268
159.5
-2.5
41
-1
-8
+ 1.1
+0.5
43
40.6
-U
-1
-0.8
Alueulaaa.- _i
Brown Boverl
Qba-Gelgy
depart OartaL.
Credit Suisse
Elaktrowatt
Roohar (Geo)„
Hoff- -
Hoff-Roeha
InterTood w.__
JalmoU
Landis ft G^r...-J
Nestle^, <
Oar-Buahrie^,.J
Pirelli
Sandoz (B),
Saddoz (Pt Cta) J
Sohindlar(Pt Cta)
Swlatalr j
Swla* Bank. -—._i
swiaa Ralnaoe.^
8wiaaVcHI%bk.J
Union Bant..
Winterthur-
Zurich ine-
440: 44
. 855 -6
1,195! —5 .
990 -6
1,600 —20
2,260 —20
406 -6
54,5001
ilsaal .t”„
+ 1 °
3.160, 45
AUSTRALIA
July 6
Pries
iAuct-S
ANZ Group
AorowAuat _...J
Ampol Pet -
Assoc. Pulp Pap
Audlmco ....... —
Auat. Corn. Ind...
Auat. Guarant. -
Auat Nat. Inds...
Auat Paper —
Bank NSW
Blue Metal — .....
Bond Hldg*
Bora! J 2.3
BTvIlle Copper J 1.10
Brambles Inds...
Bridge Oil ... ......
BHP
Brunswick Oil
CRA -
CSR
Carlton £ Utd—...
Castlemalne Tye
duff Oil (Auat) —
Do. Opts
3.70
1.30
1.18
1.55
0.10
1^9
2.18
2.50
1.67'
2.65nl|
1^7
1.06
Gockbum Camti 1.30
Coles (G JO
Comalco — ! 1.75
ljB6
3J25
6.86
0.16
2.76
JL57
1.84
3.70
0.50
0.37
2.10
Costain —
Dunlop—
Eider-Smith GJ«J 2.B5
Endeavour Res.
Gen. Pro. Trust—,
Hartogen Energy]
Hooker ........
ICI Auat
Jennings
. US
0.96
Jimb lanaCSOoFn 0.18
0.16
1.48
1.90
0.92
1.56
1.18
Jones (D)..._ —
Leonard Oil— ...
MIM-.
MeekatharraMa.
Meridian 0)1
Monarch
Myar Emp
Nat Bank J
News...
Nicholas Kiwi
North Bkn Hill — I
Oak bridge.
Otter Expl.
Pan con I
Pan Paclflo — ... J
Pioneer Co— 1
Queen Marg't Gj
Reckftt ft Coin .. J
Santos
Sleigh (HO J
Southland M’n’g
Bpargos Expel. _
Tho*. Natwlde...
Tooth.... —
t/MALCona. J
Valient Conadt J
Waltons—.
Western Mining,
Woodslde Petrol!
Woohwortha
Wonnaid Intt
1.70
0.13
2^4
1.90
0.14
0.08
US
2.39
1.80
1.16
1.55
1.38
0J»
US
0.11
uo
0.08
1.70
4.55
1.01
OJ24
0.16
1.76
SL88
1.72
0.09
0.68
2.85
0.67
1^6
2.65
+ or
— 0.01
+0AX
+ 0J11
- 0.02
4 0.01
— oja
— 0.1
- 0.02
-0.04
— 0.02
— 0.01
— 0.01
-O M
40.05
40 AS
-0.01
40A3
+8K
— 0 . 0 s
-ojo
- 0.01
— 0 . 0 s
-0.06
-OM
— 0.10
-0.05
40 AS
40.04
—0.10
—0.14
— OAS
-0.04
-0.01
—0.03
40.01
40.01
HONG KONG
July 6
Cheung Kong„._
Cosmo Prop.™...
Cross Harbour...
Hang Seng Bank.
HK Electric.
HK Kowloon Whf
HK Land.....:
Hk Shanghf Kk...
HK Telephone..™
Hutchison Wpa...
Price
HX*
16.0
1.70
10.0
86
8.151
4.82
7je;
1U
31.0
15.7
16.4
3^0
6/45
+ or
40.1
-02
—1
'4 0.05
— OA1
40.1
40.3
4 OAS
J^Wj*
6.95j — OAS
11.0 40.2
6.60 40.05
4.6 !
2 . 70 ; ....
JAPAN
July 6
Price
Yen
829
507
466
43B
666
275
618
.484
60S
382
396
367
810
500
i 1.390
1,880
aso
H-or
—l
—18
+ 1
-15
-3.
44
45
4 1
—11
-30
-10
-180
—70
-9
631 | —10
Hitachi KoM ......
Honda
Houtafood
Hoya
Itch IC)
ito-Ham
tto-Yoindo
JACGS
JAL :
Jusco ;
Kajima
Kao Soap.
Ke»hlyam*.„
Klkkoman....
Kirin
iS°kuyo
Komatsu
Komatsu Plft _.
Konlshroiku
560 | -15
468
666
990
TOO
277
388
833
397
2,330
675
315
600
800
366
437
881
467
350
571
—3
—10
— 1
-2
— 1
—l
-10
45
42
416
-18
-12
—6
JAPAN (continued)
July 6
Price
Yen
+ or
Kubota
sst
KumgaaJ
385
Kyoto Ceramlo -
3,540
+ 10
Lion-
368
-7
Maeda Cone ... .
615
+4
Maklta
724
-1
Marubeni -
283
+ 1
Man) del-
640
-17
Marul- -1
888
-13
Matsushita
sai
-15
M’ta Elea Works.
497
— 6
M’bWtl Bank
600
M’blehl Corp. ..
497
— 3
M’blshl Elect...
229
-a
M’blehl Rl East-
420
+3
MW!
181
-3
Mitsui Co
314
-2
Mitsui Rl Est.
610
+ 2
Mltsu>kosh| M .— .
347
— 3
NGK Insulators...
43S
—0
Nippon Danso-.-
975
-14
Nippon Gakki
636
+ 1
Nippon Meat......
371
Nippon OIL
856
—16
Nippon Shlnpan-
765
+2
Nippon Steel -
135
—2
Nippon Suisan....
219
3.930
-3
Nissan Motor
790
-10
.-‘w;
Nlsahtn Flour......
Nlsshln Steel
Nomura __J
NYK-
Olympus
Orient.. —
Pioneer — J
Renown,
334
ISO
398
241
890
1.280
1.460
700
457
403
49
-1
-16
— 3
419
+ 5
—13
-10
-10
-10
Ricoh I
Sanyo Elect- 1
Sapporo 257
Seklsul Prefab ... 688
Sharp 762
Shlsiedo 815
Sony 3.200
Stanley I 333
S'tomo Marine ..j 220
Talhal Dongyo._1 600
Tel sel Corp 230
TMsho Pharm.—. 580
Takeda...- 1 771
TDK— — ,3.800
TalJIn -..-.-I 208
Telkoku Oil l 875
TBS I 429
To Wo Marine.
Tokyo EleotPwr,
Tokyo Gas
Tokyo Sanyo J
Tokyu Corp !r
Toshiba
TOTO
Toyo Selkan
Toyota Motor. 1
Victor ;2,120
Wacoal I 706
Yamaha • 660
Yamazakl j • 621
YasudaHre 231
Yokopewa Mg qJ 502)+l
FT-
-1
-19
-30
-3
—3
— 1
-1
"t-jr. i
41
—2
-9
-2
li'jv'T .‘•i
-30
-13
42
--
SINGAPORE
July 6
I Price
! 9
1 +or
Boustead Bhd_...l 1.86
Cold Storage,. 3.64
DBS 7.30
Fraser ft Neave-.! 6.85
Haw Par. } 2.69
Inehoape Bud 2.04
Malay Banking ' 6.16
Malay Brew ..— .1 4.80
0p8C-. J 8.10
SI me Darby., J 1,93
StratUTrg 1 6.45
UBO- _i 4.03
—oat ; r "-.
— 0A2
— DJB '. ..
=S;*i
-oja =
— OJH
— 0A6
SOUTH AFRICA.
July 6
Price
Rand
+ or
Abercom J
AEACI 1
Anglo Am .1
Anglo Am Gold...;
2.30!
6.0 I
tml
. - . - IO...I
Amglo Am Prop J
Bartow Rand
Burials ■
CNA Invert
Currie Ft nance. _
9Anll -0.1 '
591 -1_
8.07 +0* * .
6AH +0JS >v,
27.60 -an ??• : •
5.10 +0.W
2 - ■
Da Bears.
Drlafontaln ^....
FSGedula.
Gold Reids 1 /L.l
High veld
Huletts
Kloof
Nadbank-.. ...... .
OK Bazaars "1
Protea Hldgs
Rem brant_ !
Rennies. 1
Rust Plat I
sage hwo-,::;;:;:
■A Brews,....
Tiger Oats,
uniseo
4.12; -OM V
ii.75 -an
22 \ — QJB t. - ' J-..-
49 4 LO .
iss
6.90 V
24 . -an •
a I - 0.1 >.
16.261 40JS v ' .
2,05'
t.is ;«:•
iris! +a»')!'
3.96' 40JB - -
16«9j -ft* V"
3,40 — Ojj ;
Financial Rand USJ0.73J v
(Discount of 9)%) ^ ...
BRAZIL
July 6
PricJ + M
Cruz! —
1.60 -0£
18.B
6
8.05!
fltiS:
Acestta- I
Baneo Brasil, !
|«IS0 Min.. ;
Brahma PP I
UjJ 4 » Amor a. 7 & V.
Mannasmann OP 1 2.70! +0.1* ■ *'
P*trobr«s pp. 112 20* +0*
Sruz. ; 10.65 — OJ#
Unlpar PB,.,... : a.20!
Vale RIoDooe,...! < 15.5ft -ft** ‘
turnover Cr 834.7m..' %
Volume: 103.4m.
- 1 Source: Rio ds Janeiro SE.
NOTES— Prteaa
xd Es dhrldand. xc Ex scrip teeue. xr Ex HtfWfc
suspended.
xa Ex all.
jr^-ygr
’■ ■*' uiduUai > v
Cmpaiies ud Harlot*
LONDON STOCK EXCHANGE
Growing prospect of imminent base-lending rate cuts
i'il.
lifts equities but Gilts stall after money figures
I :1»-
•N
■.<wf
«•*
Cli
•»***■« v- A.-.
W ^ri: Uld
Account Dealing Dates
Option \
•First Dedaxa- last Aeewmt
Dealings tions Dealings Day
June 21 inly 1 July 2 lolylZ
July 5 July 15 July IS Jnly26
' *"Nsw tlma " daaftes . <W tries
pm» from 9 am turn b ut i n— a days
•artier. - . .. -
lit:
ohimnosbur
’ "'K -
Newfound optimum *h gt UK
clearing bank base-tending rates
would fihmtiy.be reduced t to
12 per Cent strengthened yester-
day. London stock market
sentiment also benefited from
encouraging news on the Tail
deadlock, . but the major, etmni-
lant was undoubtedly the
authorities’ continued aoquie-
sence of -the move$ to lower
interest rotes; tim Basic of
E n gland “yesterday cat its inter-
vention rates - in UK money
markets for toe second -day'
running'.
Investors were impressed with,
these developments and chose
to ignore an easier « t**vi*g ex-,
change rate and the mine
workers' repotted decision to
submit a substantial wage claim.
Fresh demand, for Gilt-edged
securities enabled the Govern-
ment broker ID sett more off the
shooct tap, £30-paid Tressmry Goo-
verttole 12V per cent 1986; this
tame at 30f and remaining a-
seller at that piiceL ■ ’
Prior to the 2 j 30 pm announce-
ment of the June 1 ‘ banking
statistics, the trend was' folly
firm with quotations f higher
at both. ends of 'the market The
growth in. ateiHug:. M3 last';
month was exactly in line with
expectatt bos, bdt Gift gains were
paced to around i generally in
the absence of foUoW^hriottsh
Support This followed-' the pee-.
Sibflity that some loose holders
maght see fit to talc* recently-
established profits; ' - .
Equity markets . were un-
affected by ;&e banking figures.
-Dealers welcomed a finny at
early: investment interest, , some
on invitational . account, . and
hiding .shares soon extended
Monday's- recovery -wfech was
partly achieved oaTthe baefcof
pcofesrional abost-cavering. Bear
dosing was also a factor jester-'
day bot aete Was. also evidence
to suggest that some', larger
investors .were now more -pre-
pared to .part with pent-up ftmd&
Business faded later in the
session as the Gilt-edged market
became more subdued. Eariy
dullness -on Wall Steeet epo n
after its repealing yesterday
also made for caution -and many
leading industrials eased the
turn late. Measuring the trend;
the FT Industrial, Ordinary share
index posted a ;rise of 6.7 at
noon hefoce closing a net 5A
op'tfor a two-day gain -of 11
potato 4x> 554.0. -
300
250|-
200H
150
1880
1981
1982
Guinness Peat Tally
Further conrideraticsi -of - the
sale of the -group’s commodity
division to management interests
beaded by Lord KIbsUX projnptjed
a rallyin Guinness Feat which,
at 47p^ retrieved 4 of the pre-
vious day’s effective fall of 14-'
Other Merchant banks made pro-,
gross with investment support
lifting Hambros 7 to 115 p. Die-,
count Houses- were, encouraged
by. the prospect of a farther toll
in . interests rates; Cater Allen -
gained 10- .to 315p, while
Alexanders, 230p, and Glffett
Brothers, 147p, advanced &
JAPAN Icontin^"**
i. .■
F
; :v.
V. .<■ :, , T
a* -l • a I
- ,.
- . -
Va-
k>
V’Cf *,;- U ' ’
** * .V t-1 »
Vy -
v ■ r . :
a * t Cm: .
*».
v •
V- •• £•: ■’
V I . . .
»• ■■ « -•
N- . > • * ..
►. . r-’f -•
S :•
* ■ ■ : 1 •
*1 ■ ■ r
*1 -• : • >••.- .
S . \%
*• st. •• i
Vi*
L »»
. ...»
* r
r •• . ■
•; .
-*ta t
FINANCIAL TIMES STOCK INDICES
dovamment Secs. —■
Rxad lntamt....;
Industrial OniJ —
. Gold Mlne»_...._ m „
OaJ. DIv.
Earning*, Yld^(fuH):
PIE Ratio (nat) (*)
Total bargains . . . . .
Equity turnover. £<n.
Equity bargain* — —
July
6
69 AS
•70.43
034.0
39SA
’’ O-Oa
'.10.44
14,3 H
JUgf
09 M
70A0
S4BA
XBOA
0.64
llAO
10.31
14,607
102.61
July
a
69A«
69 A9
643.0
197 Jc)
0.69
11A1
10A1
13,733
114.04
10,3061 11,394
July
69.49
60.86
649.3
197.7
6.66
11.69
1039
33^30
188 A3
10,660
Juna
30
Juna
89
68.04
69.49
653.0
190.3
6.60
11A7
1041
12.383
102.24
89A41
69.76]
903,'
11.63J
15^17
lU.34j
|0j__9 l B7aj 9A731 16,143
A
yaar
64.36
6097
589.6
2901
6,03
12.11
10A9
20A58
18027
•tO jfwJam.’ -IT<mE6Qh. : Nodn6aS.i, i'wn 664.0 •
2 tm 6B4J3. 3 eon 2SOO
■ Bed® TOO GbW. Sana. T6/TO/2S. Ftx*J im. 1920 M«feM (M.
Ifl&a. . Gold Mnw 12/9/EO S£ ActM^r
: Latest Indiat OT-M8.902O - • •
• Kil-9Ja
HIGHS AND LOWS
S.E. ACTIVITY
1988
IttneaCompnafn
High-
Low
High
Law
Qovt.iaca^.
Fixed lnt_...
Ind, Orti M ._
dohi MInaa~
r» r - .
‘70.80
am .
70JT7 !
(MA) -i
004.0
<M>
309.0
own
bus
-ff/1)
62.79
am.
111B.1
. WD
1B1JB
am
: . ■ '
m.i
1BQJ*
(* *nv*7)
697A
aemo
888.9 ,
ww
49.1 8 :
anm
50JS3
C5/U75)
49A
48.8
PBnajrq
' July
July-
- •
. «
; 2
^OallT-
Cltt Cdged
: i.
Bargains^
. m je
1804
Equttiii*
- *
Bargain*..
€6^
73.8
Valua
207.J
230A
B-day Avrgo.
Ult-Edgad
Barnalna_.
Equities'
'- UafBBlna-.
1; -Value,
151.0
87 Jt»
.223.0
148.8
84.8
210 A
apiece. - Quietly firm conditions
prevailed in the major charing
bairis ^faead of tshe in^ftrim divi-
dend season scheduled to start
at" toe' end of the mouth. Nat-
West put oh 6 to 428p and
Itftdland 5 to 330p. Elsewhere,
First National finance hardened
a penny more to 34fip.
After Monday’s boot of
activity, conditions tn toe
Insurances turned much quieter.
Still awaiting official EEC Com-
mission approval - Of Allfans ’s
acquisition, of a major stake in
toe. company, Eagle- Star
cheapened 2 to 356p as recent
speculative support Was with-
drawn.
Among regional breweries,
Marston, Thompson mid Ever-
shed rose 3 to 88p following toe
increased annual profits nod
dividend.- -
The prospect of cheaper money
encouraged fresh support for
leading Buildings which dis-
played useful gains,, eoxno of
which were exaggerated by
stock shortages, Rugby Portland
Cement came to toe fore and
put On 5 to a 1982 peak of 98p-/
while Bine Circle gained the
same amount to 445p. BPB
rosier 8 to 410p. House bonders
featured Earratt Devriopments
which advanced 8 to 27 ftp. Re-
vived-fiupport left Bryant Hold-
ings 4 op at lQ^r and Bril way
a couple of pence firmer at 76p.
Elsewhere, -demand- in -a limited
market lifted RUberrid 8 to 161p.
Id touched 31Dp before drift-
ing off to dose- unaltered at 308p.
Ahead, of next Monday's results,
Amersham equalled its peak, ris-
ing 6 to 226p.
UDS feature
CBS attracted a brisk trade
and tonrijed 67p before settling
for a net gain of 4 at 65pr Heron
- Corporation, toe privately-owned
group beaded by Mr Gerald
Ronton, revealed late on Monday
had acquired^ a. ^JL. per,
cent bolding. In uDS and wife ks
preliminary figures released yes-
terday also made known that it
-was seeking a major acquisition.
Other Store leaders remained
subdued and closed a shade
easier for choice, although Marks
and Spencer bucked the trend
and added a penny at 157p, after
158p. Polly Peek continued to
stand' out among secondary
counters, rislxigf 13 more to 343p
On renewed interest, while
Cornell Dresses finned 8 to 160p
in sympathy. Suport was also
noted for James Beattie “A,”
& up at 73p, : and for House of
Lerose, 4 dearer at 9Bp.
B1CC were arid down to 285p
before closing a net 12 down at
293p following adverse comment
and on consideration of yet
another downgraded profits
forecast by a leading broker.
Other major Electricals fared
much better with GEC continu-
ing to thrive after toe recent
good results and capital pro-
posals closing i better at a 1982
peak of £L0}. Plessey, helped
by toe chairman's optimistic
annual statement, 7 to toe
good ajt 477p. Thom EMI rallied
.5 to 41 op. Elsewhere, United
Scientific came. In tor some good
support and rose 15 to 380p,
while Ferranti advanced 17 more
to 770p. Immediate Business
Systems finned 10 to JL35p os
did Electrocomponents, to 183p.
By way off contrast, Quest Auto-
' Hiirtwi feB 10 to 40p on sporadic'
offerings and lack of support
■ Engineering leadem displayed
no set trend after ft moderate
business. Vickers rose 4 to 137p
and GKN . edged forward a
. couple of pence to 148p. T1
were a nervous market and'
closed 2 cheaper at- 106p. - Else-
where, Yarrow gained 10 to.
,375p. 600 Group moved 2£ to
,fi9p.
" Foods went with the general
trend. Cadbury Schweppes
finned a couple of peace to 94p.
while Northern pat on 4 to 146p.
Tale and -Lyle also gained 4, to
I66p, but British Sugar softened
5 to 475p in the absence of take-
over developments. Avana, which
recently announced excellent re-
sults. put on 10 to a 1982 peak
-of 308p. . r Among Retailers, J.
SainSbnry attracted support and
rose 7 to- 327p, while Fitch
.Lovell, 80p, and Bejam, 1ST**,,
-added" 3 and 4 respectively.
* Grand Metropolitan stood out
in Hotels and Caterers, rising 5
to 233p. Interest was also shown
in Comfort which gained a penny
to 16*p_ -
Interest rate optimism con-
tinued to spur toe miscellaneous
industrial leaders. Additionally
helped by toe chairman’s con-
fident statement Beecham rose
7 to 286p. after 267p, while
Glaxo rose 13. to 724p, after 728p.
Reed International put on 9 to
297p and Pilklugton 5 to 198p.
while Metal Box. 152p, and
Bo water, 202p, added 4 apiece.
Secondary issues were featured
by a junto of 11 to 83p in R. W.
Tootoill following muchbetter-
than-expected annual results,
w*53e preHminary figures also
prompted « rise of 5 to 72p in
R. Kelvin Watson. Be La Rue
rallied 30 to 485p, while Booker
McConnell rose 5 to 67p on re-
vived speculative buying. Down
7 the previous day, Granada “A”
rallied smartly to IS7p ahead of
the interim results but reacted
■to close only a few pence dearer
at I88p' as toe Board’s cautious
remarks concerning second-half
prospects outweighed the satis-
factory first-half figures. Reflect-
ing toe profits recovery, Rexmore
hardened, li to 22p but Parker-
KnoU “A” feU 4 to 130p on
details of toe. factory closure
and redundancies.
Motor sectors showed no set'
trend. Components, firm initially,
fell away towards the close.
Dowty, up to I36p earlier, re-
verted to unchanged at 132p; the
preliminary* results are
scheduled for Thursday, of next
week. Lucas also came under
pressure and eased 3 to 164p.
after 169p, but AE were wanted
at 42p, up 1}. Distributors
usually moved higher. Kenning
were active and rose 3 to 61p
following news -of toe death of
the chairman and managing
director Mr David Kenning. Lex
Service interim results due at
the end of the month, continued
to draw strength from favour-'
able comment and added 4 for a
two-day gain of 9 to 135p.
Buyers again showed little
enthusiasm for Properties which
.drifted down in thin trading.
Land Securities finish ed . 4
cheaper at 266p, as did MEPC,
170p. Hammer-son A gave up 5
to 535p, while Halemere Estates
lost 4 to a. 1982 low of 338p.
London Provincial Shop and
Thames Investments shed ' 5
apiece to 408p and 85p respec-
tively.
meat to sell the company’s hold-
ing is Bradmill to Brack
(Australia). Among lower-
priced counters.
In Tobaccos. Bats continued to
rally from recent U^. -inspired
weakness and added 9 for a two-
day gain of 17 at 432p. Imperial
Group, Interim figures due
tomorrow, eased a penny to
103ip.
Golds easier
I C Gas up
Shell’s move to halt , its pro-
gramme for-nmning down sur-
plus oil stories was deemed a
. slightly bullish sign for toe oil
sector, but, once again, an early
mark up toiled to stimulate any
sizeable interest and quotations
drifted back to dose below the
best Shell, after opening at
39Qp, settled only 4 dearer on
balance at 386p, while British
Petroleum, 278p initially,
finished a net 2 cheaper at 270p.
Suggestions that a rights issue
would accompany the IC Gas
preliminary results proved un-
founded and toe shares touched
190p- before dosing a net 7 up
at 183p on profits at toe top end
of . market estimates.
In ■Shippings; -P St O Deferred
rose 5 to 148p an revived specu-
lative demand; but Reardon
Smith A remained friendless and
shed that amount to record a
two-day fall of 12 to 53p.
Attention in Textiles was
mainly centred on Tootal which
attracted an- active two-way
business and eased toe turn to
32p following the rescinding by
mutual consent of. the agree-
A return to normal working on
the South African gold mines
affected by riots over the pre-
vious five days coupled with the
news that white miners have
reached a compromise wage
agreement, thereby averting a
threatened strike, failed to pre-
vent modest losses in Golds.
The market opened on a
steady note but drifted through-
out the session as the bullion
price dipped to dose $4.75
cheaper at $310.50 an ounce.
Also affecting sentiment in the
share-market was a downturn in
the Financial Rand.
Interest in the sector
remained at a low ebb with
dealers awaiting toe June
quarterly reports, the first of
which, from the mines in the
Grid Fields group, are pub-
lished today.
The Gold Mines Index, register-
ing its fourth successive decline,
gave up 0.7 to 195.2.
South African Financials were
equally subdued. Be Beers eased
2 to 188p on nervous selling
ahead of the. half -year .diamond
sales figure which is expected in
the next few days.
Goals staged a good rally, aided
by toe recently announced in-
creases . in . export quotas.
“Am coal” put on } to £11 and
Transvaal Consolidated. Land |
to £16}. -
Renewed strength in UK
equities combined with a stock
shortage led to substantial gains
in London-domiciled Financials.
Gold Fields followed Monday’s
9 rise with one of 13 to 357p.
while Charter moved up 10 more
to 198p and Rio Unto -Zinc
another 5 to 370p.
Contracts taken out in Traded
Options increased substantially,
2,348 calls and 550 puts being
recorded. The upturn in business
Was mainly attributable to an
exceptionally active turnover in
Lonrho positions— the group's
first-half results are expected
shortly— in which 986 calls were
taken out, 308 the November
80’s. Imperial Group, .interim
results tomorrow, attracted a
useful two-way trade with 335
calls and 250 puts.
lania
price
■ P
i 5 !
lit
1982
High Low
FA
82 lg
82 it'
K
30/7
14
11
fi
F.P.
-+
48
1
tiBO
F.P.
23/8
280
46
F.P.
30(7
85
iso
F.P.
2B/ti
101
92
IB
FJ».
IS 4
32
19
5280
F.P.
4,-6
435
293
|5i8
F.P.
30/7
59
B2
|50
F.P.
28/5
188
140
J871|p
FJ*.
28/6
98
17
84
10
160
FJP.
60
60
»137
FJ*.
30/7
185
ISO
flOB
F.P.
2/7
121
110
600
FJ*«
2/7
830
595
|180
F.P.
155
150
77
FJ*.
14 (7
97
88
140
F.P.
LIJlE
166
c«:
F.P.
—
44
38
TI
F.Pj
90-
40
OPTIONS
First Last Last For
Deri- Deal- Declare- Settle-
fag* - fangs tion ment
July 12 July 23 Oct 14 Oet 25
June 21 July 1 July 2 July 12
July 26 Aug 6 Oet 28 Nov 8
For rate indications see end of
Share Information Service
Stocks favoured for the call
included TI, Automotive Pro-
duets. Town and City Pro-
perties. Trie and Lyle, Capital
and Counties, KCA Interna-
tional, UBS and Marshall’s
Universal. No puts were re-
ported, but doubles were taken
out in Hawker Siddeley and TL
RECENT ISSUES
EQUITIES
Stock
- w . ,d £!■«!■— I .©
■a- or 1 ? $; gi % si g ® ^3
ls a I - I s I!f|io>i “
Antofagasta HkS(|*lCl
Argyll Foods Warrts.
AraylO Trust.,..,.-,
Assoc. Hast Servte«w37B
iBalrstow Evos Bp 1 B3
821b 1
14
48
«Bla0ie(MlcHaeD8Opi
Cambrian & Con. 7^p|
■SConc Miofowavs...
■£■ Dancers
*Druck Hid os.
Electro- Prat, USSO.M}
92
|420
68
167
90
Group Inv Option.,.,; 12
* Knight Cm ptrlntfipj 60
!$MoCaKhyftStQRaJlBB
WMIIbsSS 10s.
on n»ms SA (usst.a)|
#OiH 1 alds Irtsp. Srvc.
* Radio City ‘A’ NV...
* Ruddle (G.1 lOp.
fralkor (Alfred) lOpJ
118
600
168
88
184
SB
60
7.0 IBAitiJiaj
109.0 I 2.1; 4.7, 15J
b W 2.5 4.3
u5.0 ; 2.4! 4.7:12.7
bfi js| 3>! 1.8 1G.6
+ 1
:-2
bS.3 1 a.B.’
juQIJe BJBI
lbdl.6i 2.0
;b6.75 8.7
iuAS:43;
[bffiOo 22.
'u2.1 '3.7j
bfi.a 1 1.5
ibk3 ‘2.6!
ioO.TS S^j
2.0.29,0
0,9:12.1
3 .8 1 19.1
4A1U
2.6 9.7
4^6.9^
2.0 17.4
9.1
2.621.7
2 J 7.1
FIXED INTEREST STOCKS
- Itaue
price
e
P
on
Eo
<Q.
. a
2 gS
3S 13
nr
FJ*.
lie©
Nil
9)7
■iioo
£10
26/8
44
F.P.
—
F.P.
I*0>7
1100
F.P.
9/7
98.85
£25
8/10
100
F.P.
—
100
F.P.
— .
99.345
£25
—
f IDO
FJ*.
.
4100
FJ*.
—
lira
Nil
—
UBS
High Low
60p
! 7 ?SS
1461b
109
101
86
|10D1b|
Mis
89>s
47
48
EBp
Up P>
101 b
Stock
IIS i+ or
<50 —
on
Antofagasta 3.5% Prof j£l) ; B8p
IBsnlox 8x Conv. Cum. Rd. Pf- ,2ppm
*•*- «BoumamouthWatoi9gRod.Prr.*B7BB.; ill*
130 jFlret Not SBipe Conv. Uns.Lo.10B7. 133 '
107 |4<LonACont1 U%Conv Jub UnsXn.'SWU: 108 I
02 ^ Marlborough Props. 10* Cnv.Ln.*te2flM l 92 if
283, Midland B k. 14% Sub. Uni. Ln. 200247.1 SBii
lOmgjNationwlda Bde.SOC. 13»5Xi3/8f83Ul00te
»9 7a I Do. 14% (4/7r83)^100t a
24 igl Now Zealand 141|X 1987 i 25Sg-
38 RIT ANortharn 4pc Net Cum. Prf. £l | 41
45 Do. 4.7PO Nat Cum. Prf. £1| 48
7ppm|2ppmjRotaprInt lUsZ Cum. Conv. Rod. Prefjlppm
n
+ 'B
+ U
+ 1
+ : S
—21-
“RIGHTS" OFFERS
laaua
prfoa
P
8
Lalaat
Renunc.
• n
186
Nil
9/7 6/8
170
F.P.
LS|6 B4[8
155
F.P.
28/8 9/7
174
FJ*.
18/6 son
-25
Nil
_
50
F.P.
24/6 13/8
825
F.P.
17/6 son
215
F.P.
on 15/8
26
F.P.
10/5 10/6
1982
8took
a i
iJa (+ or
5^ ; ~
CEX
22pm
190
ira
234
ir
445
255
25
18gm
156
21B
2pm
52
580
245
24
Applied Computer Tech
Bank Leuml (UK) £1....
isa ' ....
160 ^2
254 !+4
2pm .. ..
81
595 !
255 :
“ I
Grand Met 80p. .....
Jenka* Catted. — .
Praia |Wri.i lOp
Saatchl ft saatdi) lOp
Young (HO.
Rsnuneialion dsts usnslly last day lor dsallng fm of samp duty, t Rguras
based on pnsspactus sstlmsta. d Dhrldsad rata paid or paysblo on part ol
eapiab cover based on dividend on hilt caplaL g Assumed dhrldsad and ylsto.
r Indlcaiad dhrldsnd: covsr rslarn to piovloua dhridsnd. P/E ratio based on latsst
annual sarafngs. u Forecast dhridsnd: covsr based on praviom yoar*a earnings.
itlmati
F Dividend and yield based on prospectus or other official estimates for 1SS2.
Q Cross. T Figures assumed. O Figures or report awaited, t Cover allows (or
conversion of shares not now ranking lor dividend or ranking only for restricted
dividends- S Placing price, p Pence unless otherwise End ice tod. 7 Issued by
tender. J Offered to holders of ordinary shares as a “rights.** "Issued by way ol
capitalisation. S5 Reintroduced. VI leaned In connection with reorganisation,
merger or take-over. fl| Introduction. □ Issued to former preference holders.
■ Allotment letters (or fully-paid). • Provisional or partly- paid allotment letters.
1c With warrants. ft Dealings under special Rule. ■* Unlisted Security i
Market, ti London Listing, t Effective Issue price after scrip, t Formerly
dealt -In under Rule 133(2) (e). ft Unit comprielns five ordinary end three
Cep. ahnrsa^ A Issued free as an entitlement to ordinary holders.
ACTIVE STOCKS
Above' average activity was noted In the following stocks yesterday
Stock
BICC
Beecham
Charter Cone-
Closing
price
Day’*
Closing
price
Day's
panca
changa
Stock
pence
change
233
-12
Imp Corn Gaa
183
+ 7
276
+ 8
Intnsun
123
- 1
268
+ 7
(Canning Motor
61
+ 3
198
+10
P. & 0. Dalarrod ...
146
+ 5
485
+30
RTZ
370
'+ 5
233
.+ B
UDS
65
.+ 4
MONDAY’S ACTIVE STOCKS
Baaed on bargains recorded in SE Official List
■ Monday's
No. of closing
Monday's
No. of closing
Stock
price prica
changes pence
Day's
change
Stock
pries price
changes pence
Day's
change
BAT Inds ...
14
423
+ 8
Royal Ina
10
335
+ 8
GEC
.. 13
398
+ 13
T| Group
10
108
'+ 4
Glaxo
■■ 11
711
+ 7
Cable & Whs
9
298
+ 5
British Aero
.. 10
235
+ 7
LRC Int
9
59
+ 4*,
Eagle Star
.. TO
358
+15
Pllkington
9
133 ml
- 14
Lonrho
10
78
+ 6
RTZ
9
365
+ 5
Racal Elect
10
447xd
+ 3
Shall Trans ...
9
382
+ 2
FT-ACTUARIES SHARE INDICES
Ifna lodktt ac the Joint ca wp Big ff P fff fte Rnandar Times, the Institute of Actefes
ntftte ^cdty of Adnarki
i. -
r ■«
EQUITY GROUPS
& SUB-SECnONS
«• - Figures In parv rthesa dew imrib er cf
Pnc ls per tectl te
Tv*Mt*YXl
tadot
No.
ONfV
Cbaee
%■
£Ar?RC
r*
l-p .
r -t •
3
4
5
-,c 6
8
_ ' 9
. - 10
... a
22
_25
2b
21
29
• .32
33
' ~ 34
35
36
- - 39
- 41
— 42-
44
'.-45
. : 46.
49
CAraALfiOOBSCaon.
EuBdtog MUertMs.C23) .
Con tra e a naOnmnuctiooGa.
ElectricabGl?; , ■ ,
ETOIoegringCon tn it Uo r i CID-
Ht di M E n g ln r crlB g(67).
Metals and Metal Fanring CO).
Motes (20).
Offer IndesMBlttatefab d8) M
CONMBMM»m
Breens and ObtiBeaCZb
■Food Mm e# pc Wring C2Z)
Ftod Retailing 0.41
HeaftbendtiaosebokJ products (9).
(23).
WBB pap m lWfttllff 03) .
Padatow and Paper 04) ■
Stores (45)_
T«t 8 ec( 23 >.
Tobaccos (3).
O th er Cons u my 04).
Chimfcab CEO-
(70-
Offtoe Equlpmeat (4) .
SHpptag and Trerepret 03) .
iMPUSTMALfiWIffWBTL
351-171
583.03
3526*1
19636
149J0
8632
4UMW
99.9M
326JA
+X1
+15
■4M
tU
.455
+L1
+07
+15
+13
+15
+05
+12
422
+15
+05
424
+03
405
+UL
+05
405
402
+05
+0C9
409
+L0
Bt
Eanhgs
YML%,
(Max)
9LS6
1232
1555
6.92
1331
2137
1247
236
12.96
1537
17.77
952
7 JO
1061
1349
Z751
1056
1439
2 tn
627
295Z
1627
1953
3136
Grass
Ol
Yield %
(ACT
4 30%)
429
553
525
223
5.99
657
012
655
5.74
632
725
359
352
554
623
727
522
652
025'
626'
622
726
US
735
.522
1150 5L31
EU.
Pffi
QUO
3552
1029
7J3
3836
950
3845
. 096
ms
934
1346
1U&
939
652
1242
.844
■J535
3L25
869
832
735
626
1930
1035
56755
sna
577 J 6
351629
47756
MV
W757
31697
5MB
2HUS
61436
40745
H7J6
27626
1056
32971
26X36
24871
32857
9916
53973
32634
FH
No.
385 J 4
374461
34 B 4 B
473891
1«JM
.14600
54751
31656
25927
4SLM
4HB1
51637
356B
16253
32544
26147
2B59
32664
00044
154125
TXlSS
r
No.
32143
57676
47830
ns&
147.40
6555
30LH
31783
25U8
SUB
45739
43350
50755
I3&B
26923
36241
26341
24938
33036
38950
54247
32447
32262
32413
OKs 03).
8- iiL l
frnrr; pxj g~r 71 K'THl gvn ffv.'i ' t EH i ET 9
Wed
An
30
Mat
NOl
36745
57852
349054
477.96
39754
ran
55157
32352
26056
6036
45659
41357
90574
14041
22230
16X99
26479
25054
38235
3CU7
94642
32475
Tear
J*
litis
34426
38133
234671
41702
347.96
30051
37551
«KW
49L22
3A92
.25562
ran
22497
23770
315122
5030
29415
" : 'st
.re ■ . 61
, ■■■$&
• * ' ■ - fi 3
i frr • !' * fifl
*' Vfi6
r-’w-- ' ■ G- 67
500 SHARE INDEX : —
FHUHtt/llfillOWrin)
353AG
248.96
+0.9
+0l2>
5JB
-7A4
U1
a mat
25942
239B1
353.79
Mii
324.92
26577
2KM
+8.9
5923
. 239
262.96
26008
2SU2
y»ne
27335
27UB
229135
+0 T
9.94
2Z7J9
2ZZJ3
22251
22107
Ml 41
+0 s.
• " m
A99
-
26034
25U8
2582$
14835
26U4
19kJ6
267 JS
TK3B
397J6
WM
+0 3
127
HEM
5BU4
Witt
4TIM
3X02
3 5J6
: 32A2
fiUt
496.46
OM)
13L29
394 A2
+2.9!
-4L9
635
32U3
39&2S
152.98
13U7
39736
.13537
40286
' s -' »
70
„ 5J5
4J0B
2X21.
397J9
478J4
Other Financiai 05} — : — lil — 'J.
164J5
—03
l&tt
&9B
,628
raa
3H£L
wn
26451
J77J*
g
285A9
+0l5
5L73
28448
28477
2862$
28637
sura
UfiJA
+2A.
37A2
743
736
832
inu
■HUB
U939
3S7.7Z
HUB
35UI
.‘"a ‘
Overseas frtdeniQS)
34&81
+1 2
3A78
923
3CJ6
jaftm
an
''991
ALL5HAHE INDEX (7S0)!
+«
■ -+
A30
I
32239
SOS
aufiaUe from the PiWWier* TbeHnadcU Bracken House, CWncn Street, tendon Ktf 4BY, price Of post ZBp.
F#
NEW HIGHS AND
LOWS FOR 1982
. . J l* fodmvlas emtattaw in tee Share
IntorwwUuii Serrtee yseterday attained new
♦fata and Low* tar 1 M 2 .
NEW HIGHS (52)
__ BRITfSH FUNDS (7)
Fad*, tespc ’Sg+T Treax i*4»c
Irey ’®K 19« E«*cir. 12J*pc 1994
taher. 1*w«e 2? Trots. iShpc 199S
Etcher. 13ijpe *92
__ SUM 111
Marotsa Thompton
BUILDINGS ( 1 )
ftCBhy Port Goneot
XTPMS <1)
Beats* dj.) A
BLSCmiCALS (4)
Canbricee Beet 1mm. Baa. system
ENONEEK 1 NC (17
Mltcbefl Somers
FOODS CO
Arena Haatewood
HOTELS ( 1 >
Grand M t tropoman
INDUSTIUAU (9)
Load. JhW. Health
Blade (W
Blund eU +innoflUw Marl lag lod*.
BtWMi Acnane* ToothlH (R. WJ
Gtaeo Watson «. O
LRC.JnH.
INSURANCE CO
HteWi (C. EJ PhoerVx
MOTORS tl)
Lee Sarvtaa
TCxmxs (i)
Scnallshaw SU
TRUSTS a)
Eenttv hie.
London Clearing Banks’ balances
as at June 16 1982
THE TABLES below provide the first monthly indication of the trends of hank lending and deposits, ahead of the more comprehensive
banking and money supply figures published later by the Bank of England. They are prepared by the London clearing banks and
cover the business of their offices and their subsidiaries (excluding Scottish and Northern Ireland banks) In England and Wales,
the Channel Islands and the Isle of BKan which are listed by the Bank of England as falling within the monetary sector.
NEW LOWS (54)
CANADIANS O)
tank or Mont i —I Timm Cans Npv
Jotepii OLmJ
wiaaJra
(1)
BUILDINGS (1)
C1>
"not Product*
UCTmeALS ID
Quwc Auto. Wlgtan (H.) ■
Telephone Rental* ■
ENGINEERING £2)
Unread Wood CS. W.l
FOODS ( 1 )
C aliens A
INDUSTRIALS { 7 )
Carmans Inti. Renown lac
Fowrtv (EJ Scuta oa
Do. Dew. TNT
G.L IttidssJ
INSURANCE <11
Tirtsbo Marine
LEISURE <1)
Boowr & Hawke*
MOTORS fli
Loot I ftp*.
PAPER (21
More OVemril Smteh < 0 J)
monxrr ot
Grevcoat Eats. MEPC
Henemero Regional Prop.
Land Sees. Resehjugti
Lon. A Pravi. S&op Thames lav. A-Secx.
Lytttoa
SHIPPING (S)
Reardon Lyle SMpotna
Do. A
TEXTILES- (21
Textured Jersey TQrav
TRIKTX 151
Crescent Jind Jut. Inv. Tst Jersey
GeaL StnddMldea Westeoot Inv.
WWW
OILS (SI
BP . Floyd Oil
Clt Fi*. P e on l e * Moray Firth
daremont P*t
OVERSEAS TRADERS (11
Non law.
ROBBERS (11
Malatotr
MINES (41 '
Dc Been 40 pc Pf. Gdpens Cans.
Geevor NorfhgKe
TABLE L
AGGREGATE BALANCES . Total
outstanding
LIABILITIES fin fin
Sterling deposits:
UK monetary sector 13,123
UK private sector 47^32
UK ptibUe sector 941
Overseas residents 6,110
Certtflcates of deporit • - 3J36
of-wUch: Sight
' Time (Inc. CD's) ...
F oreig n currency deposits:
UK monetary sector 13*584
Other UK residents — 3^20
Overseas residents - 30,227
- ' Certificates of deposit ' 4409
Tefal .d^Mrits
Other liabilities* -
TOTAL LIABILITIES ...
Change on
month
fin
fin
70,742
21,770
48.963
+465
+608
+ 7
+ 82
+ 49-
+L211
- 46
+1^57
51310
+ 930
122fiSl
lSJtlt
+2,141
+ 218
137^75
+2^59
ASSETS .
Sterling
Cash and balances with Bank of
England
Market loans:
- Discount houses
Other UK monetary sector ...
Certificates of deposit
Local authorities —
- Otter ........
1,236
+ 55
18,956
+ 744
sms:
Treasury bills
Otter bills
Total
ootetanding
fin fin
234
1,232
Spedri deposits with Bank of
England
Investments:
British Government stocks ..
Other
1,466
2,728
2,606
5,333
+ 75
+ 5
81
Advances:
UK private sector ......
UK public sector
Overseas residents
44,374
509
3,568
Otter sterling assets*
Foreign currencies
Market loans:
48.450
8,424
+ 413
+ 44
UK monetary sector
Certificates of deposit
Other
12,609
309
22,493
35,411
-122
- 27
+844
THTIo .
Advances: •"
UK private sector ...............
UK public sector..................
Overseas residents ..............
2£16
505
U^62
115
-148
+ 10
+319
+
+
Otter foreign currency assets*
TOTAL ASSETS ...
15,083
2,799
+ 162
+ 45
137,275
+2359
Acceptances
Eligible liabilities
2£1G
52,780
* Includes items in suspense and In transit
RISES AND FALLS
YESTERDAY
Rfxn Fails Sams
British Funds 60 1 30
Cornu. Dom. and
Foreign Banda 10 3 Bs
Industrials ' ..... ■ 32S Til 901
Fin. and . Props. ... 130 62 -320
OOs a 19 60
PtaRtationa 3 2 18
Mhrea 3B" -3S 84
Othar* 17 19 H«
Tools .... -Oil 252 1,593
NATIONAL WITT jaiwr &
TABLE 2. INDIVIDUAL GROUPS
TOTAL
BARCLAYS
LLOYDS
MIDLAND
WESTMINSTER
(SLOTS
OF BANKS’ BALANCES
Out-
Change
on
Out-
Changa
on
Out-
Changa
on
Out-
Changa
on
Out-
Changa
on
Out-
Chang*
liabilities
standing
month
standing
month
standing
month .
standing
month
standing
month
standing
month
fin
fin
fin
fin"
fin
fin
fin
fin
fin
fin
fin
fin
Total deposits
122,061
+2^41
34^74
+429
22*407
+747
25,702
+636
36,409
+289
3,269
+ 40
ASSETS
Cash and balances with Banir of
England • .
1,236
+ 55
340
- 34
200
- 33
270
+ 39
382
+ 78
44
+ 5
Market loans:
UK monetary sector
27,508
+725
7478
+139
5,087
+389
3,972
+369
104*29
-143
442
- 29
other
26,859
+715
7,444
+ 81
5,308
+242
5,611
+156
7,612
+207
884
+ 29
Bilk
L581
+ 99
565
+ 61
291
- 28
335
4 U
356
+ 39
34
+ 14
British Government stocks
2.728
+ 75
853
+ 17
426
■ — ■
820
+ 21
577
+ 38
51
Advances
63^33
+595
18,631
+128
11*871
+274
13335
+ 28
17,226
+143
1,869
+ 22
TABLE 3. -
INDIVIDUAL GROUTS OF BANKS’ ■
KIJGtilif.E LIA BHJT1ES 52,780 - +386 17,062 ' +254' 9,222 + 61 10^04 ' — 48 14^16 +110 1,475 + 10
— i m r' iimn r
34
«BH
and Markets
CURRENCIES and MONEY
Dollar improves
THE POUND SPOT AND FORWARD
Dollar was slightly firmer
against most major currencies
In thin and erratic trading. The
market was generally rather
confused, with the downward
trend in Eurodollar interest
rates failing to prompt any
large movement against the U.S.
currency, despite the better
money supply figures in the last
two weeks.
Sterling remained firm
against most currencies, despite
the easier trend In London
interest rates, bat lost ground
to the dollar.
The Argentine peso was
devalued as part of an economic
package resulting from the
sharp deterioration in the
economy. The commercial rate
was set at 20.000 to the dollar,
compared with about 15,700
previously. This rate applies
to imports and exports, while a
new financial rate, as yet
unfixed, will apply to ail other
transactions.
DOLLAR — Trade • weighted
Index (Bank of England) 121.6
against 12 L3 on Monday, and
107.2 stx months ago. Three*
month Treasury bills 12.65 per
cent (11.50 per cent six months
ago). Annual Inflation rate 6.7
per cent (6.6 per cent previous
month)— The dollar rose to
DM 2.49 from DM 2.4775 against
the D-mark; to FFr 6.9055 from
FFr 6-8675 against the French
franc; to SwFr 2.X210 from
SwFr 2.1065 in terms of the
Swiss franc; and to Y257.7Q
from Y257.20 against the
Jap anes e yen.
STERLING — Trade-weighted
Index 912 against 9L2 at noon,
9U in the morning. 91.4 at the
previous dose, and 915 six
months ago. Three-month inter-
bank 12JS per cent (153? per
cent six months ago). Annual
Inflation 9.5 per rent (9.4 per
cent previous month) — Sterling
opened at $1 .7295-1 .7305, and
traded within a range of SI .7200-
S1.7330. before closing at
SI. 7220-1.7230. a fall of 75 points
on the day. The pound rose to
DM 459 from DM 45850: to
FFr I1.S9 from FFr 11.88; and
to SwFr 3.6550 from
SwFr 3.6450; but eased to Y444
from Y445.
D-MARK — EMS member
(weakest). Trade-weighted Index
124£ against 124.7 on Monday,
and 122.6 six months ago. Three-
month interbank 9525 per cent
(10.55 per cent six months ago).
Annual inflation 55 per cent
w5 Per cent previous month) —
The D-mark showed a slightly
finnertrend overall at the
Frankfurt fixing, but lost ground
to the dollar in very Quiet
trading. With no new factors to
influence the market Hie dollar
rose to DM 2.4839 from
DM 2.4725, without any inter-
vention by the Bundesbank.
Sterling fell to DM 45860 from
DM 45890, and the Swiss franc
to DM 1.17295 from DM 1.1740.
FRENCH FRANC — EMS
member (second strongest).
Trade -weighted index 74.0
against 74.1 on Monday, and
80.8 six months ago. Three-
month interbank 14 per cent
(14*15 per cent six months ago.
Annual inflation 13.8 per cent
(135 per cent previous mouth)
— The franc weakened against
roost major currencies at the
Paris fixing, but improved
slightly against the Swiss franc,
which fell to FFr 3555 0 from
FFr 3.2586. Sterling also eased
to FFr 11.8970 from FFr 11.8980.
but the dollar rose to FFr 6.8930
from FFr 6.85S5. Within the
EMS the D-mark rose to
FFr 2.7751 from FFr 2.7750: the
Dutch guilder to FFr 2.5110
from FFr 2.5102; and the
Belgian franc to FFr 14.5290
per 100 francs from FFr 145165.
DUTCH GUILDER — EMS
member (second weakest).
Trade-weighted index was
unchanged at 115.7 against
1145 six months ago. Three-
month interbank 9A per cent
<10*3 per cent six months ago).
Annnal inflation 6.4 per cent
(6.6 per cent previous month) —
The guilder declined against
the dollar at the Amsterdam
fixing, but rose against sterling
and the Belgian franc- It
showed mixed changes against
th members of the EMS. with
the Irish punt rising to
FI 3-8100 from FI 3.8080, and
the Danish krone to F? 31.995
per 100 krone from FI 3154.
On the other hand the D-mark
fell to FI 1.10495 from FI 1.1054;
the French franc to FI 39.82 per
100 francs from FI 39.845: and
the Belgian franc to FI 5.7850
per 100 francs from FI 5 .7360.
July 6
Day*
spread
Close
One month
Three
month*
%
P-a.
US
Canada
Ncthlnd.
Belgium
Denmark
Ireland
W. Ger.
Portugal
Spain
inly
Norway
France
Sweden
Japan
Austria
Switz.
1.7200-1.7330
2.2260-2.2380
4.77^-35
81.75-82.06
14.78-W.84
1.2M0-15480
4.27> r 4-30> 3
144-50-T46.SO
152 .00- 1 83-25
2.402-2.412
10.86i2-11.O2
11X7-11.82
10 .58-10. 64
441-447
30.00- 30.25
3.63V3J7*i
1 .7220-1 .7230
2.2250-2^260
4.734-4.744
81.75-81.86
14.82-14.83
1 .2485-1 .2475
4.2B4-4.294
144.3XM 45.40
192ft5*13L06
2.407-2.459
0.38-0 .44c dim
0 78-0, 83c dim
1 VIHc pm
10- 20c dis
1V2Vora dis
0. 65-0. 78 p dts
IV-IHpf pm
B0-2S5C dis
160-1 85c dis
14-17 lira dis
10.95l-10.S6V 3V4V»«dtS
11X8 VII -89V IV-ZVedis
IVZVora dis
2.3S-2.05y pm
ISVIOVgro P«"
3-2 1 *: pm
Belgian ran Is for convertible francs. Financial franc 88.82-89.32.
Six-month forward dollar 1.73-1 .78c dis, ILmonth 4.95-4 ,80c dis.
10.60V-10.61V
443V444V
30.04-30 09
3.68-3.66
-2ftS 1.33-1 ftSdls
-4.34 2.44-2.4Sdf»
4.12 44-34 pm
-2J0 67-67 dis
-IftZ 9V10V db
-6X8 2.03-2.1 Bdj»
3ftS 4-34 pm
-14J6 220-7ffidts
-10.73 495-535dia •
-7.72 49-63 cfls
-4J4 WV-llVdh
-2.02 18-12 dis
-1.98 4V5V dis
6.9S 6.10-5-80 pm
4.79 35V® pm
9.03 7V6V pm
-3.15
—4.43
-3.03
-2.72
-9.75
3.50
-13.43
- 10.68
-8.47
-4.08
-3.70
-1J8
5.36
4.29
7.80
THE DOLLAR SPOT AND FORWARD
July fi
Day*.
spread
Close
One month
% Three
P-a. months
%
P.a.
UKt
lielandt
Canada
Nathlnd.
Belgium
Denmark
V/. Ger.
Portugal
Spain
Italy
Norway
France
Sweden
Japan
Austria
SwiS.
1.7200-1.7330
1.3858-1.3907
1.2916-1-2940
2,7375-2.7515
47J8-47.50
8, 5600-8. 60S
2^750-2.4935
84.00-84.45
111.62-111.97
1.7220-1.7230
1.3870-1-3886
1.2920-1.2930
2.7486-2.7515
47.48-47^0
8.5975-8-6025
2.4885-2.4905
84.25-84.45
111.65-111. TO
1,392 VI -3984 1.396V1J98V
83420-63870 63S7M3625
6.8760-0-9060
6.1380-6.1800
258.60-257.75
1744V1748
2.1070-2-1220
8.90304.9080
8.1550-6.1600
257. 65- 257 .75
17.44V-17.45V
2.1200-2.1220
0 39-0. 44c dis
0.61-0.41e pm
0.12-0.15C dis
1.65-1.SSc pm
Sc pm-1 dis
0.65-0j40era pm
1.45-1.40pt pm
30-130c dis
7D-S0cdte
6-7 lira dis
Q.50-Q.90ore dis
036-0.1 5c pm
0.60-0.40ora pm
1.94-1 .88y pm
11 VIDVgro pm
-239 1.S3-1.38dra -3.15
3.98 130-1.18 pm 337
-136 0.42-0.460 Is -4.08
7.01 4.58-4.48 pm 6.62
-0.78 1-3.6 dis -0.18
0.73 0.70-030 pm 031
637 4 08-4.01 pm 638
-1139 70-370 dis -10.44
-8.0S 200-225 dis -7.59
-5.60 18-20 dis -6.46
-132 1.50-1 .906 is -137
0.43 0.7D-1 ftOrfis -0.65
038 130-1.60 pm . 1.11
836 5.47-537 pm 8.41
7.48 32-29 pm 7.68
11.71 530-5.70 pm 1034
2. 12-2. 02c pm
t UK and Ireland are quoted In U.S. currency. Forward premiums and
discounts apply to the U.S. dollar and not to tha individual currency.
CURRENCY MOVEMENTS CURRENCY RATES
July 6
Bank of
England
index
Morgan
Guaranty
Changes*
ntcrling
DlJi
-38.2
U.3, dollar.
121.6
13.4
65.3
-21.6
Austrian scMlllng-
117.1
+ 26.8
94.8
-1,8
Danish kronar.
82.1
-14.4
Deutsche mark.. ..
184.5
+49.0
Swiss franc..
144.9
+ 96.4
Guilder
115.7
+22.9
74.0
—20.1
Lira-..-
55.5
-58.5
,Banki Special ‘European
July 6 . rata i Drawing Currency
I % i Rights Units
Van 1313 I +25.S
Based on trad* weighted changes from
Washington agreement December, 1971.
Bank of England index (base average
1976 =100).
Sterling. | — :
U.S.S.. I 19 I
Canadian 9.. 19.58
Austria SchJ 63«,
Belgian F J 14 j
Danish Kr—.j 11 '
D mark.. I 7ij
Guilder. >
French Fr,...,
Lira
Yen
Norwgn. Kr.
Spanish Pts.
Swedish Kr.
Swiss Fr
8
9is
19
Sit
9
8
10
5i«
0.6308901
1,08785
N/A
19.0068
61.6009
9.33295
8.70062
2.98504
7.49441
151637
879.206
6.91708
181.447
N/A
9.30312
N/A
0.550764
0.953647
138925
16.6745
45.1684
8.16322
8.36218
2.61080
6.55480
1388.91
844.849
6.04899
106.570
535444
8.01315
66.7698
Greek Dr 1 ah. 204
•CS/SOfl rate for July S: N/A.
OTHER CURRENCIES
EMS EUROPEAN CURRENCY UNIT RATES
ECU
central
rates
Currency
amounts
against ECU
July 6
% change
from
central
rate
% change
odfueted (or
divergence
Divergence
limit %
Belgian Franc ...
44.9704
45.1624
+0.43
+0.2B
+1.5501
Danish Krone ..
8.23400
8.16322
—0.86
-1.03
+1.6430
German D-Mark
2-33379
2.36218
+1.22
+1.05
+1.0888
Fiench Franc ...
6.61387
6.56490
-0.89
—1.06
+1.3B4Q
Dutch Guridor ...
2-57971
2.61080
+1.21
+1.04
+1.5004
lush Punt
0.691011
0.686324
-0.68
-0.8S
+1.5691
Italian Lira
1350.27
1328.91
-1.58
—1.58
±4.1369
Argentino Peso... 1 34.450
Aua trafkaDa liar . . . 1 1.6980- 1.7000
Brazil Cruzeiro.. .'29838-2 99 3B
Finland Markka..*. 1B37 ft. 1936
Greek Drachma..- 120.044 129.404
Hong Kong Dollar. 10 31 1&-1Q3245
Iran Rial I 146,49
KuwaltDinanKD)! 0.49523.4961
Luxembourg FrJ 81.76-81.85
Malaysia Dollar... 43835 -4.2900
New Zealand Dir. 2.3355-2.3395
Saudi Arab. RlyaJ.S.9870-5.9326
Singapore Dollar 3.7Uj-i.72't
SthJkfiican Rand 1.9856-1.9896
U JLE. Dirham,...: 6.3265-6.3340
20.000 I Austria........
03827-0.98321 Belgium.......
172.33- 173.19, Denmark....
4.7430-4.74501 Franca
69.20-69.70 'Germany^...
63095-3.9838: Italy.
. 30.00-30.30
.! 88.60-8930
Japan
Netherlands .
Norway
Changes are for ECU, therefore pcaipva change denotes a
weak currency. Adjustment calculated by Financial Times.
84.40
0.2874-03977
47.48-47.50
j 8.3610-2.3630 i Portugal
! 1.3519 1.3838 ; Spain 7 ... .
13.4400 3.4410 Sweden
>2.18108.1330 1 Switzerland
1.15051.1618 United Stati
! 3.67803.8740 i Yugoslavia..
* Selling rate.
14.75-14.89
. 1133 1133
-l436ta-430i 2
.1 8360-8400
.1 444-449
.! 4.7H4-4.75U
. j 10.92 11.08
.148V- 168
. 18414-193^
.- 10,5310.66
3.63V -3.67
. 1.7Ut-l-73l2
• 81-95
fRate shown for Argentine is commercial. Financial rate not avadobia.
EXCHANGE CROSS RATES
July 6
Pound Stirling
Uft. Dollar
Deutecham'lf
Japanese Yen French Frano Swiss Franc Dutch Guild*
Kalian Lira Canada Dollar Belgian Franc
Pound sterling
U.S. Dollar
1
0.681
1,723
1.
4.888
2.489
444.0
867.8
11.89
6.904
3.656
2.122
4.738
8.750
2408.
1398
2.226
1ft 92
81.80
47J49
Deutschemark
Japanese Yen 1.000
0.233
2.882
0.402
• 3.880
1.
9.657
103.8
1000.
2.774
26.78
0.892
8.232
1.105
10.67
561.6
5423.
0.519
S.012
19.0B
•.,184ft .
French Franc 10
Swiss Fr# nc
0.841
0.274
1.448
0.471
3.605
1,173
373.3
121.5
10.
3.254
3.073
1.
3.984
1.296
2029.
658ft
lft71
0.509
.68,78
22.38
Dutch Guilder
Italian Lira 1,000
D.2U
0.415
0.364
0.715
0.905
1.781
93.72
184.4
2.510
4.939
0.772
1.518
1,
1.967
608ft
1000.
0.470
0.924
17.27
33.97
Canadian Dollar
Belgian Franc 100
0.449
1.232
0.774
2.106
1.927
5.241
199,5
542,8
5.344
14.54
1.642
4.468
2.129
5.792
1083.
2944.
1.
3.721
56.76
100.
FT LONDON INTERBANK FIXING ( 11.00 a.m. JULY 6 )
3 months U.S, dollars
bid 151M6 ; offer 15 19/18
6 months U.S. dollars
bid 16 15< IS ! offer 16 1/16
The fixing rates are tha arithmetic means, rounded to the nearest one*
sixteenth, of the bid and offered rata for 510m quoted by the market to Bve
reference banks at 11 am each working day. Tha banka ate National Westminster
Bank, Bank of Tokyo. Deutsche Bank. Banqua Nationals do Paris and Morgan
Guaranty Trust.
EUROCURRENCY INTEREST RATES (Market closing Rates)
July 6
Sterling
1 U.S.
[ Dollar
Canadian
Dollar '
Dutch
Guilder
Swiss
Franc
D-mark
■ French |
i Franc ;
Italian
Lira
Belgian Franc ■
Conv. Rn.
Yan
Danish
Krone
Short term
7 day’s notice...
Month
12H-12*i
12 5* 12
121 -lZt*
12 , b 12ui
143* -15
14*ji-15l4
16ri I6p,
I61-- 18V
15*s-16lg ■
16-17 .
16* i
8*x-9
ess 8-*,
e« a,#
21-.3
21; ft
4,V 4ri
a : '..0Ki
8-n-ai?
B -9*
: 14V-15U 1
14 V-15U
14*4-1514
18-20
lSSs-20
19*4-20 Vi
13-19
• 14-15
1514.153*
14 14 U '
15-194 i
15 f > -151) ,
64-6lg ; 124-13S 4
6,%-6i* | 14 It- 16
61*-7 • l5i a -17
' lx months . .. .
BneYoar . . .
iSViS'a
12/ 1-12 lx
I3i 16,*
15m -19,r
27^0-174
17Sp 17i*
9 -.. 9A
9Js-9»s
5V-5ia
5;,-5:r
. 9l*-9Je
9U 9 Jg
• 1717-18 •
. 18>; 18M
2113-22
22 lg S23 (
16 lg- 16Jg
16lB-163g
194 151^ r
15 lg 153s '
7+-7+
71s-74
17-lBif
1768-19 4
o
5>DR I'nke.1 dcpniiti: one mnnih 12V-124 p nr com; three months 124-134 per com. six months 134-134 percent; one yasr 13V.!3 T » per cent.
ECU nntrd dcras'i*. ouo munili 12*H-12*ia per cent: ttirao mon/ita I2 u u-l3 1 ik per cent: s>x months 134-134 per cent; one year 134-134 per cant.
Asmn S (cins.nn r>trs n S-mtarMiP) : one montli per cen:. three months 15tV*-13 B j. per cent: nx months per cent: one year 15>Vt-
r r * <ent l"i-i-:rnr EufnricH! jr two voara 154-164 per com; raise years 154-164 per cc-v:: four years 164- UPi per cant; five years 154-184 per cent; nominal
files-m i.iFi S-'in; leim nates are call lor U S dollars. Cerad an dollars end Jaoanese yon: others two days' nodes.
The Ip.'ew ng rates were quoted for London dollar certificates d deooS'i- one mono 15 05-15.15 per cent: dire# months 15.25-15.35 par cent; six months 15.40-
13 FJ oo; rent: ono ycjr 15 40-15 50 per com.
MONEY MARKETS
EUROCURRENCIES
Bank cuts dealing rates
$ rates fall
UK cl paring bank base lending
nir 12} per rent (since Jane 8)
There was a mood of cam i mis
optimism in the London money
markc; yesterday nrer the
increasmc possibility of a cut
in rlcanng bank base rates.
This fnllnwert a reduefion in
Bank of England dealing rates,
where iV of a point was cut
from band 3 and 4 Period rates
reflected the fall with three-
month interbank at 12MS* per
crnl compared with 12S-1.7 per
rent and three-month sterling
CDs quoted al 12*1-12,^ per
cent compared with 12 13 -12 tt
per cent.
The Bank of England fore-
cast a shortage of £250xn with
fartnrk aiTrrting I he market
inclitiling bills maturing in
official hands and a nd take up
of Treasury bilk ~i'lS2m and
Exchequer transactions — £190m.
On ihe other hand there was a
fall in the note circulation of
£60m. The Bank revised its
forecast to a shortage of around
£5C0m and gave assistance in
the morning of £lS2m. compris-
ing purchases of £i7m of
eligible hank bills in band 1 (up
lo 14 days! at 12' per cent,
£H4m in band 2 (15-33 days) at
12t per rent and £46m In band 3
( 34-63 days) at 12&-12I per
cent. In band 4 <64-81) it
bought £5m of local authority
bills at 12tV per cent and £80m
of eligible bank bills (64-84
daysi at 12 tf- per cent.
Further assistance was given
in the afternoon of £69m.
making a grant total of £251m.
The afternoon help was made
up of purchases of £58m eligible
bank bills in band 2 at X2| per
cent, £3m in band 3 at 12A per
cent and £Sm tn band 4 at 12ft
per cent.
In Frankfurt the Bundesbank
added further liquidity to the
market through currency swaps,
bavins injected some DM lj-2bn
cm Monday in the same way. How-
ever call money remained finn.
Hill reflecting the unwinding of
a DM 6.1 bn repurchase agree-
ment. The amount of help given
yesterday was not specified by
the authorities. Cal] money was
quoted at 9.00-9.10 per cent.
In Paris the Bank of France
cut its money market interven-
tion rate to 14} per cent from 15
per cent when buying about
FFr 3fhn of first category paper
front the market. This is its
lowest rate since March
Eurodollar rates continued to
fall yesterday as the market
awaited U.S. reaction to the
latest money supply figures re-
leased on Friday. While a mood
of cautious optimism may have
been detectable with regard to
lower interest rates, the market
seemed unlikely to adopt any
positive trend in view of ex-
pected distortions in money
supply in the next few weeks
and without any firm direction
from the Federal authorities.
European interest rates were
slightly weaker overall and this,
together with an improved per-
formance by the dollar in the
spot market, saw the dollar
weaken a little in forward
trading despite lower Euro-
dollar rates.
Elsewhere Euro-French franc
rates were easier, reflecting
further reductions in French
domestic rates as the franc
maintained its recent steady per-
formance within the European
Monetary System.
MONEY RATES
LONDON MONEY RATES
NEW YORK
'*■ r n:r
TiH luniis i lunch-time)
Trp.-.urv h.lls |1C-viecl,)
7-OBSiirjr bills 1 16- week)
isv
14V14V
12.65
12.96
July 0
1983
Sterling
Certificate
of deposit
Local Local Auth-
Interbank Authority negotiable
deposits bonds •
Finance
House
Deposits
i Discount
Company Market Treasury
Deposits Deposits Bills 4
Eligible Fine
Bank ■ Trade
Bills t pills *
GS^MANY
Lsnbard
Ouvrt.fthi rate
C*ic monrh
T'vcc months
5 k mortbs
9.00
5.05
9.45
9.55
9.65
Overnight,...
2 days notice...
" days or...... „
7 days notice „.
One month
Two months. ..
Three months.
Six months
18-14
IZtg
12 *fl- 18Se
1254 Ills- 121* -
125,. 12ft
12 V- 12 ft
12^12,%
Nine months " 12^ 12ft -
ti tfift
FT.ANCE
One year... 12^
Two years-
125s 12*4
12Ai-12tt
12*4-12*3
12V 12*8
1254-12*3
125* 12*i
18 9 t-l2?s
12is 125 4
12*4
125 4
185s
12H
Uls
13 is- 13
13Ba-13
1358-13
1854.123s
13 12 V
13-1254
18V
123 4
127 S
184*
127s 13
1270-13
is «a
131,
1812
181s
121^18 >4
12ig 22>z
12 18ft
LZl fr ia»4 12ft 18ft
13-191, 12 1,- 12 ft 121,12 ft
11*3-11^
■Sf
127,
12
1 ert.cn rato
O^csnijh: rale .
Ore month
months .
Sit months
15
15.25
14.8125
14.8125
12.6875
JAPAN
P.-rour.; rsta . .
' >; ;u*ce.rCitior.3ii
:■ ‘ ■! - lthrcc-monih)
5.5
7.1S62S
7^8126
Local authorities and finance houses seven days’ nauos. o&ers saveit days fixed. Long-term local ootfiomy mortgage
rates nominally three years 13V per cant: lour years 13V pw cent: fiv# years 13** per cent, ft Bonk Mi rate, m uSe
are buying rates for prune paper. Buying rates lor four-monsh bank IxM a 12*»-12*i* per emu four momfts trade bi&s
per ConL
Atrarorrmaw soiling rats lor on* men* Treasury biUm l2V-12 7 » oor oanq two months 12 *u- 12V per cent: thru
months 12*o-12*u par cant. Approximate soJitng rata for one momh bonk b«a 12V per cam: two months 12V* per cant
and three months 12V, par cane one month trade b^s 12“j* per cone two months 12V per cent; thraa months 12V per
ccw.
Fitwnce Houses Bom Rate* {published by the Finance Houses Association) 13V per txnt from July 1 igga. London
end scottfah Owing Bank (Mas for landing 1ZS per cent. London Oearlng Bank Deposit Rene for sums at seven
dvrs nonce 34 per ««. Treasury Bills: Average vender rare, ol discount 12.2513 per cam. Carblicataa of Tax Dcbbsm
(S enas 5) 13>« par cent from June 30. Deoositj nrthdrav/nlar cash 11 per cent.
i.’ jltiil-.i-,
-* - -U
FT UNIT TRUST INFORMATION SERVICE
Abbey (Jnft TsL Unqrt. Ce)
WSt Fanfs Ctaehjari EC4F 4DX
SB^ra«._pi8
HlghJaeEgDhy_.p4.
Ciplfad Crertt
Men so Growth
C ant n i i dit ii&Enera
01-2961833
AUTHORISED TRUSTS
gfdfle fral d Managornmit LM.
™SInySg.,EC»lFD
01-5886906
CKseent UnB Tst Magn. Ud. <a)(g>
4 Mflrdlr Crat, EdMugbS Q3M263812
Dra. Amane aa
Cm. rrr^
032
EoinsFrec
AUu Hjnq&lns UsHH Mngrs.
45L CorahW, London EC3V3PB. ttt-6236314.
AHRGIk Trust I93i 98.4 *0 -U U53
ARM Karabro LfaL U J <«>
DartingtoB Unit Treat Mngt Ltd.
Dartigra Taras. DwooT096JE. C0OS8bZ7l
Total Peri. Uott TnJZO* Z3JJ -04 5i5
L A C-Urit Trait Maaegeqieiit L«^^
RcttKchtW Asset ^
St SUMWS Lang. tasbntCd. fa-6264356
*UWUVuML
Rothschild Asset (flmagnnent tal lg> t*j
— M a-.-L. — BJ iidratau.i WAl
I Iam b i b Hse fto m , frM«uL&jo
Bre n tweed (0277)2ll«9 & 229122
til u a t
®s.
CrAwthS, li
Allled~
1
July 6 '
. ;
* 1
i Note Rates
Miu eU wa ry Unit Find Menagn
3608 Noe Bmsd &, 02*1 lNU. 0M»
Dhc. loc.July2 1 2M4 287 J( — i 476
Lmiiue AdmiidsttatM Li«L ■
2, SL Mary Asq, EC3A8BP- OMOAIM.
SHi '-d al
Dunbar Unit Trust Manapen Ltd-
33. PM 6talC Innlat^ 5JH. ttWaa
3peCfN,
E. F- Wiach es t ar And Mngt. Ltd. _
44 Btaenubray Square, WC1A2RA
.--j If
Uayds Bk. Unit T*L "toV*- ^ U)
OW 459144
72-80, CM**** B4, W«tra¥
ag:^?"Fd T . a “8§l B
N.C. Smaller Cos— ^
Boom Unit That Mngt W
- • EC2.
xm
?. '
Equity & L«r Un. Tr. M. (*) (b)' «)
Awershan RiL. High WJieambe. 09943W7
KGwth.TR. Act — eo*
KGwth.TR. !«.—
& tol Fxd. 1 aLTRJnc ,
HOv*rT*rtei TRACE q „
FWEmtj gLAa-, 2S
Generali
HiDint-
FUaRtv l ul ar nat i ea el RuHawt LfaL
Trust Mi mg ts
62, Laadoa WaS, EC2R 7DQ 01-6381200
aS3!?tsir«k xV ”
L Habte St- ECZV 7J A 01-2360101
Anthony Wider Odl TsL Mgnt
29, Wldeprte St, London EZ 7HP. 0U4788Z7
fesaBra!!^-
37, 0mi St, LooOon, EC4R1BY. 01-236 5201
‘ ' WM IS
UoyiTs lift UnK Tst
2, SL Mary A*^EC3A88P- wo-1 0 ^ 6 f§i 4
Equhy Aoeum. (2) — J2SW SOLbfi — I
Local Anthorftks* Mrinto *"*«*-JJ*^-
77, London MMI, EC2N 1DB. 01*588105
8422
BBSSStss^B# '
Royal Lenden IWt Trt Mgr* Ujl
Wemrawn SMS
Capital Aeon Tnot_£»L9 63.4 -*<Lfl 4®
'SclSSjftjfwft
JSLd-
Prices mJrw XL nod sh«b nyJ*»
Sam ft Prosper 6 W
4 Greet St- Helens, London EC3P-3EP
4^-
S' - '
James Finhy Unit Trent Mngt Ltd.
30-14, West N8e Sheet. Glasgow- 041^0*1321
j. Oiotav letsmtl.
auaTunKs.
Acorn.
-loanee A Property .
^c pio i Lil a tlo a)‘!ZZl
MAG troop <lXe)<ri
TbrtelWft Tower HW. ECW6Ba
&?■
j 1 :
- *
01-6264588
f|
Income — ■ — re *- 3
S 3 S 3 a
Ned data. Job
Freer fington Dnft Mgt Ltd. U0
64, London WWL EC2H 5MU (0MB5UH
plbwtl - . .
(Aocon. Units) f
[Acom.
Robert Freser Trust Mgt Ltd.
28& Aftxnarie St., WJ- 01-493 3m
IL7U. 1667 70.4j 1 6J»
ft*t. Fraser ULTsL |667
Uret TsL Mgs. Ltd-Ca)(c)
317, High Holboni, WC1V7NL. 004316233
738
Arkwright Management
Parsonage Gifts, Mandwster 061-8342332.
Aikwrkpe Fd Juh6 4100-1 1069-414 473
Barctays Uorcara U&faKcKl)
Ontoon, Ho. 25% Rondord Rd, E7. 01-5345544
Friends Pm. Tn»t Mastigare (aKb)fc)
PWum End, Dorttao. TeL8850=
Foods in Corat*
PubSc Trustee, Khgsway, WC2.
Unborn America
Do.Aust.Acc.
Do. AusL U
Do. Capital.
aa:..-
DtcSTftri.be.lncJ
Do-Wr-ParfftcAccT
Do. Gh. Padfic tat.
Do. Growth Act
’■sift
Baring Brctfaere A Co. Ltd. " +
A BHnpsgate, ECTMAE. 01-283 8833
signtfisL
Do.
Do.
Do.VYkhrUe .
BtsLIn-FdAtf.
Dal
(Anin. U n i ts ). ^11
ISSXZL-ml
toWiwS)
£iBope .
(Axon. Units)
Sfuller Co.’s
(Acaen. Units).
American.
ffiSSjSrzB
uSSuaL Units)
MasUlt Management Ltd.
SL Georges War, SteMnage. 04385«m
“mr-
ribn
Mayflower Managemeat Ce. LfaL
14-28, Greslnre SL, EC2V7AU. 01-6068099
SEtf.
issaMsfcBH
K-’.r
uu-.'.X 1
***
S.LL Trust (a) (g)
5 RsylHoh Road, Brentwood (0277)227300
66A K77 563| +071 5-36
McArtafly Fond Management Ltd.
Begb Hse^ IQngWMan SL, GC4. 01-6234951
DripMJoc.TsLAcc._p62 389 1
tarTexeispt Into
Scottish Amicable lira. Mngrs: Ltd.
150 St Vincent St, Glasgow. 041-2482323
Eqrity Tiwt Accum...pi27 32LZJ +L2J 548
ScotUsb EqnitaUe Find Mgn. Uri.
SSL Andrews S^EdMurah 031-5569101
Kexl sri). day Jdn 13 (by - ..
Msheps^ts Progress No MgraL. Co.
Stock Eachaage, Lnretoo, EC2M H13. 01-5886280
B*WW Pm# **J"« 29. g76£
AaTUiWs -Jura 29. top
B'gotr Iol Jrir 6 (333.4
Nett sub. tkj Jra 20. -Ju*r 13. riMeeMy
Bridge Fond Managers CaJCe) .
Regli Hse, King WUaoi SL, EC4. 00-6234991
— i us
Ca rfa oore Fund Mraiog ers ta)(g )
2 SL Mary Ajw. EC3A88P 016236114
Dealing oriy: 01-623.
AtHtrattan Titnt_ZH
Brit5 TsL (pEldn)
Coeeixxfltj'bm
Mencap Unit Trust Mngrs Ltd <a)(eXg)
Urdcom Mse, 252 tanford Rd, E7. 01-5345544
(47.9 5L4| +0JJ 632
SSKSffi'^dRi: . 23^3 %
M en c iu y Fund Managers Ltd.
30. Gresham SL.EC2P2EB. 016004555
Amer. GrT—
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277
Scottish Wfidwrs’ Food Management
P.O.Box TO, EdMwgbEH165BU (81-6556000
PeBOMsTO. Jrir6__f947 102.fi +Ot| -
SIMCQ Moaay Fund*
66, Cannon Street. EC4N 6AE 01236143
m9SMfT m
SlUCOSFdl
Stewart Unit TsL Managers LfaL(a)
Chntoue Sq, Edbdnxgb. 031-2263271
— * ' - -- Crawl
pfincnCJBl mail
Aoam. Unttx__„
VAtUrnral UMts
•Brttrsti Ciritri
Actum. Unfa._
3L3A
Deal tTm. A Frt. -Writ —Mao. 6 Thur.
Sim Afflmce Fund Mamgemeut Ltd,
Sim Alliance Hse, Horsham. 040364141
itwfai arwid a
Swiss Ufa Pen. TsL Man. Co. Ufl-(alCe)
9-12 ChwmUe, London, EC2V6AL 01-2363841
i| E j iS
Fixed Idl Acc.T JlJjW 114^ ,_..l 1373
‘Trxir^' 1
IPrfces ra Jo^r 1 Not deaUrg Afir 7.
Target TsL Mums. Ltd. (a) <g)
33, Gteskan SL, E.CJL Dealings: 0296 594L
Muster Fund
Hse, Aittar St, EC4R 9BH 01623 1050
Guardian RoyM Ex. UnB Mgts. Ltd.
Stoyri Exchange, EC3P 3DN 0X6283011
Cag)GuardhDTst 0397 144JI +2fl 4.42
«'=i W
Henderson AdmUstratton U) Or) (c)
OJC. Foods •
■*a=W 4471 ■ “
MLA tJM Trust MtigmnL LfaL
0M(faeen Street, SW1A9JC. 0X2226177
MLA Uidts JfiBJ 108.91 +02J 373
Investment Tmst
Special S%ratkx»_
fiTsSjaSm
Mwrey J oh nst on e U.T. MgnL (a)
163, Hope Street, Glasgow, G22UH. 041-221 SSZ1
513 — J 3 90
Pacific iraome
Pacific Re In*.
Worldwide Cnrital
77 J
Dealing da j Friday.
Extra Income .
Preference Shore.,
Easily.
Exempt FMs
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is
Brawn SMpiey & Co. LfaL (e)(gr
HarUreb Hse, Ha y wxu ft HU, Sc. 0444-458144.
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(Acoxn. Units)
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Brent SL Aee, BtanfWdSL,EC2. 01-6383911-2.
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48, Gncadwsh SL, EC3P3HH. 016234200
NPl6tt.Un.TsL — WL8 +0.91 5J0
KgRStSSizBJ 3
(Arson. UriW)....:...|a63 253 +ua 170
Trades Unhn Unft Trust Managers.
100, Wood Street, E.C7. 01-628 80U
TUlTTJiXyl— 1651 M3| -12} 537
TransatmUc and Gen. Secs, (c) (y>
91-99, New London Rd, Cfctlmfairi. 0245-51651
Barbican July 1.
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CotHncoJal
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National Wos h nl n s ter (a)
1U. Clawtt. EC2V6EU.
(Acam. units.)
Mdtng inL '
(Accmn. Units,
yang GwtnAjIyA
*-raw»i^ P4 U«*JI T
Bodcmacter Uaosgenwtrt Co. Ltd.
The Stock Exchange, EC2P2JT. 01-5882868
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Do. l«nmeD»SL— -D62 393+53 8.72
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Cannon Ftowl Managers LfaL Ce)
3, Ofyreptc Way, UtantPey, HA9 0N8. OX-9028876
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IDOIOW Bread SL,EC2NlBa 01-5886010
Caprtai QS7
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—i 069
Hexagon Services Ltd.
4Gl SL Helens, LonOsa EC3P3CP 01-5510094
BmrintaLGr. Ibl449^ . S2J| | 438
NEL Trust Managers Ltd. (a) (g)
M»6on Coort, D0ffclng._5wrey. _ 0306887766
KSS emr
Nrisctr High Inc
Nefstar ireereoional.^A 5531 +0.
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45 Beech SL, ECfa>2LX 0X6288011
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Carr, Setag Unit Trust Manager* (a)
57f63- Princes SL, ItaRchestar 06X4065665
C*rr,Bri»g Cap. «. .144.0
Carr Seoaq Ik. Fd. _B?.9
CraSeSglVrEM1i.|2U
Cent Bd. of Fm. of Church of Engbnd#
77 London WaB, EC2N 1DB. 01-5881813
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Charinco Charities N /ft Fund#
15i MoorgoM.isndUL EC2. 01-63B4T21
leone Jura 30 \ Jn ^ j
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20, MoorgUe, EC2H 6Afi 01-6064477
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PJL Box 4, Norwich, NR13NG- 060322200
Croup TjLFbnd J5CB3 529ft +AX* 532
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2SL HlghKottonL WC1V7EB.
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01^4058441
HK Unit Trust Managor* LfaL (*>
3 Frederick"* Pt, Ohl Jewry, EE 2 01-5884111
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Charities Official ItwtsL Funri»
77 London Wall, EC2N 10B. 0X8881815
Fpficn Units Adnria. Ltd. CgX*J
576^, Princes* St, Mandwner. 061-2365685
Pelican Unris .- 4048 144ft +0ft 481
Perpetual Unft Trust MngmL la) (a)
48, Hart SL. Hen/u? oo Thames ‘ 049126068
Growth — IM.6 84.91 J 182
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11, New St, EC2M 4TP. ■ 0X2892632.
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Premier UT Adoriq, 5 H ay l ei gh
Brentxrood, Exa
Fractical InvesL Co. Ltd. (yHc)
44r Bloomshury Sg, WC1A2RA 01-6238893
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Provincial Life Inv. Co. Ltd.
bz. BhhcpsgBo, eca
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Chwdortoo Rind Ma na g ar Ug)
S7e6L Prtocess St, MmdBUr. 061-2365685
firrwth
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High Inn.
Confederation F^nds MgL Ud. (a)
50,ChCo«ry Lone, WC2A IHE. 0X2420282
Grcwth Ftari. F7B3 B2M I 430
Cnfgmoimt Unit Tst Mgn. Ltd.
Mdcnia^, London EC4N 8». 01-3ffl99B4
sStea
859 S
Investment luteffigena Ltd. (a)
113 Worship SL, EC2A2AB. 01-6266626
IWri. Areer. Tech. RL.W97 7 '
IMri./aLAGrearib.Kj 27.
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PreBBetedinOiogy
01*2476533
Deposit ;
TSB Unit Trents Or) < e) (y)
Do Accuoi. _
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TSB I
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Key Fttnd Managers LfaL (a)Cg)
!/3lWbreitt>SuEC2A2AB. (06286626.
6 EEBP=iE- , * a *
SSsssSEr - 1
ftufl. PwlfcS, «mn. LU. M (h! (c)
"traren Bare, ECM 2bH. 0X4059222
Mhlfak,
KieJmort Benson Unit Managers
2H Ftndavdi SL, EC3 ’ (0-6238000
WHra Management Co. Ud.
MBr^Stre«EC2 01-6004177
t Geo. Ftf. — Q68.9 176“
Ubtw Bank (a)
W»lag street Ben sd.
(bHRUer Grew* (444
Unit. Trust Aecoimt & MgarLJfaL
bask BK, King Wthoni SL EC4R9R. 01-6234951
Frtore Hse. Ford 51. 4 56.91-1.41 SOB
02323S2B .
47.71 +0ft 909
KB HrgbVtd.Fd.bc. MM
BMOswet Unit 88gi^ Ltd.
NOTES
Jrkn are in nmer oiSe« atheraiu indicated art
those dedgnatod S with na prefix refer tn d-S-
“far*. V*ris % (shown in laa co/non) jlRow lor a*j
buy«B txperan. a Offered ortces 'mdude »
•TOWS. 6 prices. « YleWbert an«B«
prenmm tosjraice plans, s SJnfie pr*ri«xs
■nsvreAoe. x Offeree pice lodadre all «pe»o
wept xyrefV Cwn^mion . , Offered prior Mirta
Nr.,
■iieTOWtifbMWJhreiifiiinanaQersJr Prerinjr
9 Gran**, pw. * Snspertre.
F 1 ™- * -™r- yro. * w**
• .■« rr^ore Jenry i-w ♦ Ex-vMrisra 1 -
. i
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INTERNATWNAL*' ' ® ■ > “
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FT SHARE INFORMATION SERVICE
Financial Times weanesoay v i :
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S 3
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B A
6J 360
<9 87
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The Fiunefa) Tlm« Busin ew infm-mtioa Ua i to d . Registered in Eagiud No.S 0 SSSl
Regwtmd Office; Bracken Borne. 10 Cannon Street. London EC 4 P 4 BY.
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NEWPORT
For details of industrial development sites
contact Gareth Isaac or Tony Parker,
Dept FT, The Civic Centre, Newport, Gwent,
*■ ■■■■Tel: (0633)65481 -
FINANCIAL TIMES
Wednesday July 7 1982
CHANCELLOR SIGNALS TOUGH LINE AS NUM DELEGATES AGREE ON CLAIM FOR £115 MINIMUM
Howe seeks lower wage rises Miners vow
THE LEX COLUMN
THE GOVERNMENT is likely
to abandon the practice of set-
ting specific pay limits for the
public services in the coming
wage round as part of its
efforts to convince workers of
the need for substantially lower
pay settlements.
While no formal decision has
been taken, the Government is
expected to break with its prac-
tice of announcing in the late
autumn separate pay and price
factors in the cash limits it
applies to central and local,
government and the health ser-
vice.
It announced a cash limit pay
increase provision of 4 per cent
for this year and 6 per cent for
19S1.
Public service settlements of
between 6 and 7.5 per cent have
been contained within the 4 per
cent overall limir on increased
spending on pay by offsetting
job reductions and other
measures.
Tbe decision not to announce
a separate pay factor this year
might appear to some as an
Ban on sale
of Bradmill
share stake
By Anthony Mo re tor. Textiles
Correspondent
THE National Companies
and Securities Commission,
Australia's corporate watch-
dog has after its first public
hearing, blocked a move by
Toot a! to sell its 49.9 per cent
holding in its associate
Bradmill Industries textile
group, to another Australian
company.
Tooted. the Manchester-
based textile concern,
announced last December
that it had agreed to sell its
shareholding to Brack
(Australia) another textile
concern for A339.8m
(£23.4m).
Last night the British com-
pany said it was “very dis-
appointed" at the decision,
which ties it to the Australian
company for some time.
Mr A. Tyldesley, a director
of Tootal, said the sale would
have helped in the rationaiisar
tion of the Australian textile
industry. The companies had
put a lot of time and effort
into setting up the deal.
Tootal. which bought its
stake in Bradmill for AfilS-om
in 197S. has reorganised its
own operations in Australia
by putting ail its interests
except those of threads and
non-woven fabrics into the
company.
But it has grown dis-
enchanted by the Australian
authorities’ attitudes towards
tariff protection.
Decent moves have sug-
gested that tariff barriers
may be reduced, opening up
the possibility of an inflow of
cheap clothes from the low-
cost Far Eastern suppliers
such as Taiwan, Singapore,
Indonesia. Hong Kang and
Malaysia.
The company has also been
disappointed at Bradmill's
dividend policy. Bradmill has
been spending on new capital
projects, which has kept the
dividend lower than Tootal
would have liked.
Tootal has recently under-
gone a rationalisation of its
operations, particularly in tbe
UK, where the workforce has
fallen front 20,000 to 9,500
Since 1979-79.
Sonic indication of the
muscle Tootal will put nn
Bradmill came with the an-
nouncement that Bradmill's
chairman. Sir Norman Young.
Is retiring, having reached the
age of 70. nud would he
succeeded by a former
Tootal director. Sir R. E.
Hartley, who went to live in
Australia and became a
director of Bradmill. Is to he
the full-time executive chair-
man of the Austral iau
company.
BY PHILIP BASSETT, LABOUR CORRESPONDENT
creases the Government would
like to see in the coming round.
However, he said the Govern-
ment’s approach " means sub-
stantially lower pay rises than
last year.’’
The average level of settle-
ments across the economy as a
whole is running at about 7 per
cent. Those in the nationalised
industries are at about 7$ per
cent and in the public services
a little below that.
Sir Geoffrey said that,, in an
ideal world “ sanity and
realism ” in the face of the
present high level of unemploy-
ment “ might well mean no pay
increases at all. This would pro-
vide the fastest route to higher
employment.”
He acknowledged that creat-
ing more jobs meant planning
for " very low pay rises indeed.”
Workers had not “earned a
passage off the hook" simply
through two years of relative
pay restraint. Falling pay settle-
ments had not meant a fall in
real earnings, because inflation
had gone down.
acknowledgement by the
Government that powerful
unions have succeeded in treat-
ing previous figures as a norm
to exceed. But the greater
flexiblity provided by not re-
vealing its negotiating hand too
early, fits in with a tough line
on pay signalled yesterday by
Sir Geoffrey Howe, Chancellor
of the Exchequer.
At a Press conference in
London, Sir Geoffrey refused to
put a figure on the level of in-
The Government i a dearly
keen to try, if possible, to get
away from the idea of an
annual wage round, and annual
settlements. A key rapport in
this will be the report of the
Megaw inquiry into civil
service pay, published today,
which recommends major pay
reviews once every four years.
Criticising a pay system
which, for many workers “ is
expected to provide an auto-
matic increase, 'delivered, as it
were, with the milk,”- Sir
Geoffrey said, the Government
needed to say to workers:
“Forget about the sort of
huge leap-frogging ' percentage
increases you’ve had in years
past ' That era has gone for-
ever.
“ To protect your job, to
preserve the jobs of those you
work with or who use your
product, and to provide new
jobs for those who are out of
work, accept a lower increase
this year than you had last
year.’’
Labour news. Page 12
Hopes of cut in interest rates
boosted by money supply cheer
BY MAX WILKINSON, ECONOMICS CORRESPONDENT
OFFICIAL figures suggesting
that monetary growth in the
UK is now well within its target
range yesterday raised hopes on
the money markets that interest
rates may soon be cut.
The Bank of England's
estimate of the money supply
in mid-June suggests that, in
the four months since mid-
February, the three principal
indicators have expanded at
rates well within the Govern-
ment's target of an annual 8 to
12 per cent. 1
The London clearing banks'
figures, also published yester-
day, suggest that the rate of
increase in their lending to the
private sector may have
moderated in June.
Bank lending to the private
sector was increasing at about
£1.8bn a month between
October Sid April. However,
the latest figures suggest that
the increase in May arid June
may have fallen to about £lbn
a month.
In the banking month of June
the London banks' advances to
the private sector increased by
£498m, which they say suggests
an underlying rise of about
£700m. When the full banking
figures become available next
week the total increase in
private-sector lending is ex-
pected to be about £lbn or a
little less.
The money markets reacted
yesterday by reducing interest
rates, with the three-month in-
terbank rate down j point to
12H per cent In spite of con-
tinuing uncertainties about U.S.
interest rates and a rise in the
exchange rate of the dollar in
London, three-month eurodollar
interest rates eased £ point to
154 per cent- The - pound
finished in London down J cent
at 51.7225.
The City generally believes
that British domestic indicators
paint to a moderate cut in bank
base rates. The annual inflation
rate has been falling, public
borrowing appeals under con-
trol and sterling has been
steady. At the same time the
Government will be anxious to
give the economy any stimulus
possible, to help it out of the
present recession.
The authorities; however,
London
3- month
Interbank
Rate .
remain, cautious about the trend
of U.S. interest rates and . their
possible effects on sterling, it
seems unlikely, therefore, that
any strong signals will be given
for a downward movement, j
although the authorities may '
give a gentle- nudge to any
falling trend in the markets.
Yesterday .the Bank of
England followed market rates
down by lowering its dealing
rates by 1/16 point' for longer
term bills to b etween 12 3/ 16
per cent to 12 5/ 16 per cent
The Bank’s preliminary
estimate for monetary growth
in the month to mid-June sug-
gests sterling M3 rose by } per
cent, private sector liquidity
(PSL2) by i per cent and Ml
by 2 per cent
MONEY SUPPLY
Percent increase! February to June
at annual rate
The narrow measure of money. Ml
comprises notes end coma and private
sector bank deposit^ which can be
withdrawn without neb'ea.
The broad measure of money, star-
ling M3. Includes Ml plus public
sector bank deposits and privets
sector deposits which require notice
of withdrawal.
The broadest measure of money,
PSL2. includes ateriftig M3 plus other
money market instruments, savings
deposits end securities (Including
deposits with building societies} end
certificates of tax deposit.
OECD forecast gloomier
BY DAVID HOUSEGO IN PARIS AND MAX WILKINSON
contracts am frozen.
HR fa expected to pay
employees reporting for work
this week, hut the suspension
or the PSO grant combined
with the lack of revenue from
elsewhere will force the
Board to decide whether it
can borrow to pay wages.
It is under an obligation
to pay members of the IWR
under the guaranteed work-
ing week agreement, hot the
fact (hat it has .still not
reachcil agreement with the
MJK on productivity issues
may hasten a decision to
suspend the guaranteed
working week.
ER's underlying financial
situation means it is in no
position to meet its obliga-
tions hy continued borrow-
ings. Accumulated losses at
The end of 1981 were put at
£7Sm. and BR was forecasting
losses of £165m for the
current year before the NUR
and Aslef strikes.
A SLOW and hesitant economic
recovery among industrialised
nations this year and next,
accompanied by further rises
in unemployment, is forecast
by the Organisation for Econo-
mic Co-operation and Develop-
ment.
In its half-yearly review, the
OECD secretariat paints a
gloomy picture of output within
the 24 nation group — rising by
only 0.5 per cent this year and
2.5 per cent next year. Last
December, it expected growth
to pick up in the second half
of this year to an annual rate
of more than 3 per cent.
It now sees unemployment
rising la almost 32m, or 9 per
cent of the OECD labour force,
in the first half of 19S3 com-
pared with its earlier predic-
tion that the number of job-
less would level out at 2S.5m
this year.
The OECD’s forecast for the
growth of the UK economy is
significantly more pessimistic
than that prepared three months
earlier by the Treasury.
The OECD suggests that UK
Continued from Page 1
output wii grow by about 1-25
per cent this year, compared,
with the Treasury's March
estimate of 1.5 per cent
More importantly, the OECD
experts the annual rate of
growth to falter in the first hdF
of next year afler reaching ?
per cent in the second half of
this year.
The Treasury, by contrast
believes there will be a steady
pick up of activity as inflation
is brought under control. Its
March projection suggested
growth of 2 per cent in the first
half of next year compared with
the OECD's 1.5 per cent.
The OECD endorses the
Treasury view that the annual
inflation rate will be reduced to
ahout 7.5 per cent by the first,
half of next year, although it
is more sceptical about the
consequeirses for growth.
Dr Sylvia Ostry. head of the
economics and statistics depart-
ment of the OECD, said
yesterday the recovery In the
OECD countries would be
backed by stockbuilding and
private consumption and
emphasised that “ stronger
investment, which is essential
if faster growth is to be
achieved in a durable .way, is
not a part of the present
projection.”
Within the overall framework
of slow growth, the -report says,
countries are experiencing
differing trends. UJS. real gross
national product is projected to
fall by about 1.5 per cent in
1982 and grow by little over 2
per cent next year. The pattern
of short cycles in which activity
is boosted by tax cuts but
restrained by monetary ceilings,
is seen as continuing:
Japan is expected- to -move
from a growth rate of under 2
per cent this year to a little
under 4 per cent in 1983.
In Europe, the report says,
GNT could grow by ahout 1.5
per cent in 1982 and 2.5 per
cent next year. The estimates
were made before last month’s
realignment within the Euro- (
pean Monetary System and
assume no increase in nominal
oil prices.
Details, Page 3
to fight for
31% pay
demand
B John Lloyd, Labour Editor
BRITAIN’S mineworkers are
committed to fight for a wages
and conditions package which
includes a pay demand of 31 per
cent and carries with it a mul-
tiple threat of strike action if
negotiations break down.
Mr Arthur Scargiil. president
of the National Union of Mine-
workers. said at the union's an-
nual conference in Inverness
yesterday that a campaign for
the claim must be carried to
the coalfields through pithead
meetings, rallies . and an ex-
panded edition of the union's
newspaper.
He warned: “ If our member-
ship rejects us, it will be seen
as a green light to the board
and Government not only to re-
fuse our wages claim but to
attack pits, jobs and standards
of life.”
The union also took a step
towards bringing in five -yearly
elections of officials, replacing
the present system of election
for life.
Tbe composite resolution on
wages, overwhelmingly passed,
would bring the basic minimum
of paid surface workers up
from £87.80 to £115, a 31 per
cent increase. All other grades
would receive commensurate
flat rate increases.
The flat rate element means
that the £27.20 increase for
lower paid workers would also
be paid right up to the top
grade. It would bring the
highest-paid face workers’
mi nimum up from £121.55 to
£148:75. • The National Coal
Board reckons the cost of a 31
per cent increase on all grades
at £420m. However, the flat
rate claim would mean a cost
of around £400m.
Other resolutions passed
include demands that miners’
wages, which tend to peak in
middle age. will be main-
tained when they move to less
demanding work <off the coal-
face, and that surface workers
move to the same early retire-
ment age — 60— as coalface
workers.
All of these demands are
backed by threats of industrial
action. The wages claim calls
for a special delegate con-
ference to be convened If the
claim is refused followed by an
immediate overtime ban and a
recommendation, to miners feat
they vote in a ballot for a strike
or other union.
The union’s negotiators will
attempt to draw up a wages
package for the union’s execu-
tive on July 15. If approved,
ft will be presented immedi-
ately to the Board. Mr Scargiil
said that negotiations would be
deemed to have begun as soon
% the claim was presented.
Sir SeargUFs new model onion.
Page 23.
Weather
UK TODAY
MOSTLY dry and warm; some
rain in the north and west.
S. and g'-R- England. Midlands
anil Channel Tula min
Mostly dry with sunny
periods. Max 24C (75F).
E- N-- and NJE. England
Sunny intervals with a little
rain or drizzle. Max 21C
(70F1.
Rest of England, Wales, Scot-
land. N. Ireland, Isle of Man,
Orkney and Shetland
Cloudy with some rain or
drizzle; clearer later. Max
19C (66F).
Outlook: Little change.
WORLDWIDE
Vday Vdty
midday midday
*C *F »C f
Ajaccio S 29 84 L Angt F 16 61
Algiera S 32 SO Luxmbg C 20 68
Amsdm C 17 S3 Luxor S 39 102
Athana S 29 84 Madrid S 35 95
Bahrain S 37 99 Majorca S. 33 91
Barelna S 33 91 Malaga S 27 81
Beirut — — Malta 5 37 SS
Ballast F 16 61 M'ehstr .C 18 64
Just a whiff of
cheaper money
:/
Tinv reductions in tbe Bank
iff England's bill dealing rates
continue to titillate the financial
markets, but. there was not
much excitement in the June
money supply indication. A
3 per cent rise in sterling M3 —
‘which the miners have
unaccountably ignored in fram-
ing their pay curbs — did not
satisfy the gilt-edged market's
best hopes. The U.S. bond
market, re-opening after
Independence Day, was less
enthusiastic about recent UJS.
money figures than London had
been on Monday.
Still, the markets have got
the feeling that the authorities,
as so often before, would quite
like to see interest rates
slightly lower. Bank lending
was again not far short of £lbn
in banking June, but the Bank
of England bulletin more or
less rales out any increase in
rates to combat this, for fear
of choking off the recovery —
and inded yesterday's vehicle
production figures point to
some faltering in activity. No
doubt fee Bank wiH Let fee
markets know when it thinks
rates 'are low enough.
Granada
The video revolution Lb prov-
ing a mixed blessing for
Granada. Increased spending
on rental assets has pushed up
depreciation and ' -interest
charges -far enough to elimi-
nate an HA per cent gain in
operating profits during the
half year to mid-April. At the
pre-tax level, profits, are down
2J3 per cent to £23.9m and fee
group is warning shareholders
of a similar downturn for the
year as a whole.
Granada's cash outflow this
year could be dose to £40m,
enough to leave net borrowings
at over 35 per cent of share-
holds' funds. Unfortunately,
this cost is being borne at a
time when other businesses are
failing to fire on all cylinders.
Property profits are down, as
Granada seeks tenants for Its
City sites, while the benefit of
buoyant TV advertising revenue
is being partially offset by the
cost of preparing for channel 4
—fee group is likely to charge
about £5.6m against its revenue
account this year.
Bingo earnings are starting
to recover and the U.S. Telerent
business is inching its way
towards profit but negative cash
flow will remain a feature of
Granada’s performance for a
while yet In fee meantime, the
share price of I89p produces a
i prospective yield of 4 per cent
Finance for Industry’s report
and accounts provide little
Index rose 5.6 to 554.0
j PENCE
TOOTAL
SHARE PRICE
_A«JNIWtV MEMSCS
detailed Information about fee
performance of its investments,
or where last year’s sizeable
bad debt provisions have been
made, but there is a wealth of
data about the structure of its
Uabiij&es.
According to fee inflation
adjusted accounts, fixed rate
debt comprising roughly half
of FFI’s £950m of monetary
liabilities at fee end of March.
A good portion, of this is very
cheap, though none as attrac-
tive as the 3 per cent mort-
gages extended . to staff
members, and offers a useful
endowment inaome. Increas-
ingly, however, the company is
redeeming fixed-rate eurodollar
debt ahead of time and taking
the book profit to reserves.
By covering itself on fee
foreign exchange market. FFI
finds that it can refinance fee
debt in dollars and convert the
proceeds into sterling to pro-
duce a total cost of funds aa
attractive as that available to
the oGvernment Broker. To
judge from tbe yield on its
quoted bonds, FFI would have
to pay about 60 basis points
above a comparable gilt-edged
yield to obtain the money
direct. FFI's shareholders,
mainly the clearing banks, are
obviously impressed by Ibis
financial showmanship. Thsy
are about to subscribe another
£15m of equity capital.
Tootal
The breakdown of Tootal's
plans to sell its Australian
associate Bradmill is a serious
nuisance for the company and a
further Wot on Australia’s
wretched record of dealing with
foreign investors — for sheer
bloody - mindedness almost
matching Canada.
Tootal has for some time held
just under half of Bradmill, and
has «Dt been allowed to taki
control. It has a lot of capita • i
tied up in a business frn»ir-
which it derives very little-easi
flow and which is threatened hr
the growing possibility th$ ^
Australian tariff barriers, might ft- :
be lowered to the benefit of Fa*.- 1
Eastern textile manufacture ri
It had found a satisfactory solt^ r '■
tion under which the localcoq^i -\i
pany Brack was wilting to' buy 1 ■'
it out. take over its Australia^
trademarks and bid for the rest
of the company on the samfc
terms. - r i •
The newly-formed National '
Companies and Securities Coni,
mission challenged the .deal
claiming that Tootal* was ricei*
ing more favourable term? thim
the other Bradmill shareholder.
In essence 1 this was a quibbli
about the value of tradepurfcs,
which has gone on for so long
that Tootal, believing it »
damaging to Bradmill’s business,
has called the whole thing off.
* It will feus not receive the
promised £24m cash— a ; very
important injection to aiconv
pany with £70m of ner' djjtji is
January (against £l33ffl &
equity), and an interest charge _ ’*
that swallows half its tadinV
profit. At 32p. down 1 p yesfpJ.
day and 9p since the ffcan*
came out in May. Tootal Tihar I
yield 10j per cent. _
CCA i
The Aslef spirit Is alive and-^
well in the accountancy ppafcfr
sion, which according *lo- e?rIy
voting returns is supporting.^
a small margin) the resolution
from its militant Burgess Hilj
branch calling for the abandon-
ment of current cost accounting’'
the so-caUed “flexible amflf.
ing.” The accountants, many of
whom are believed to have mort-
gage- commitments, are thus
defying their Moorgat erased
executive and voting fqr ithi
historic 1919 “pound is -4
pound *’ agreement. . . v
Support for the exenrtitil"
was most noticeable in the.,
larger depots such as Mttftanb
where somp accountants ww :
crossing picket lines in ordfl,
to apply cost of sales adjust
merits as usual. In contraai
some provincial audits were*'
a standstill. A general moflSL.
increase in fares may
on the way to cover tha,-««
of the long-running dispute;
Much may still depend on tM
last-minute influence ofrVtBi
“Big 8" signalmen who .eftmd
enormous stretches of the*w®;
Ing network. MeanwhlKra&
of fee profession’s biggest custfr
mere are wondering whether^
reactionary accountants are flin -
tiest people to design their ori
working practices.
■ADVERTIS3
I • POWER
Ferranti computer
contract for Tomess
Ferranti Computer Systems
■has won orders of over £8
million for control and data
processing computers for
Tomess nuclear power station
in Scotland. Contracts were
awarded by South o f Sco tland
Electricity Board (SSEB) and
National Nuclear Corporation
(NNC).
■Distributed monitoring and
control functions will be
performed by over 70
Ferranti Argus 700 computers
r angin g from the micropro-
cessor based 700GD, used as
controllers, to the very power-
ful 700GX minicomputers
0 AVIONICS
used far central data process-
ing and supervising.
Up tn 15,000 analogue and
15,000 digital inputs front the
two reactors and - their
ancillary systems may be
monitored. Software will rim
under the Ferranti OSC
operating system with applies:.,
tions software written In
either Ferranti FMS : or
CORAL.
A Ferranti F-Net communica-
tions system will link the
computers providing the dis-
tributed data base. The data
processing computers will-
access information from any
of the other computers.
RAF
Inquiry into Falklands crisis
I introduce a special three-hour
Commons debate on the
establishment of the inquiry to-
morrow at the request of the
Opposition.
The committee is being set
up by the Government and will
report to il. Consequently, fee
motion before fee Commons is
likely merely to be for the
approval of the formation of fee
Inquiry and MPs will not be
able io change its terms of
reference.
The wording represents a
careful compromise to secure
Opposition backing and reflects
a change in presentation to an
emphasis on recent events
rather than Mrs Thatcher’s
earlier stress on the historical
background.
The committee of Privy Coun-
cillors has been instructed, ” to
review the way in which fee
responsibilities of Government
in relation to the Falkland
Islands and their dependencies
were discharged in the period
leading up to the Argentine
invasion of the Falkland Islands
on April 2. taking account of
ail such factors in previous
years as are relevant, and to
roeport."
The Prime Minister also con-
tacted former Prime Ministers
yesterday tn inform them, as
a matter of courtesy, of the
establishment of the inquiry
which will look at events
of previous Administrations.
Following criticisms by Mr
Edward Heath and Mr James
Callaghan last week. Mrs
Thatcher has apparently tried
to reassure them that there wiU
be no breach of accepted con-
stitutional convention in giving
the inquiry access to official
papers from earlier Administra-
tions. She has stressed that she
and her ministers will not have
such access.
Mrs Thatchers Insistence
that fee inquiry be Onipleted
by the. end of this year at the
latest meets Labour's pre-
ferences, as well as her under-
standable desire to get any
criticisms which may result out
of the way well before any
General Election. This appears
to have been underlined by her
attempt to rule out an early
election.
Bolgrrf
S
28
82 Melbne
C
12
54
BarKn
F
18
6* *0x Ct
Biarritz
S
24
75 Miamit
F
24
75
Bmghre
C
20
-68 Milan
S
30
Bliekpl
F
17
63 Montrlt
F
IS
64
Bordx
S
32
90 Moscow
C
23
Boulgn
fl
15
59 Munich
F
-23
Bristol
c
17
63 Nairobi
C
23
Brumla
Budpir
c
19
66 Naples
. — Nassau
S
29
84
Cairo
s
33
91 Nweatl
c
18
Cardiff
c
18
64 N Yorfcf
s
19
66
77
Caa’b'ca
s
23
73 N »ee
s
25
Capa T
c
13
55 Nfrosla
s
30
Chicgt
F
X
77 Oporto
s
21
70
Cologne
c
21
70 Oslo
F
IS
Cpnhgn
F
17
63 Parla
F
23
Corfu
s
32
90 Perth
F
IS
Denvart
s
14
57 Prequa
s
20
68
Dublin
c
17
63 Rvkjck
R
.11
*!?
Dhrvnk
s
27
81 Rhode*
Ednbgh
F
i»
56 Rfo J'ot
Faro
5
24
75 Rome
S
30
Florence
S
31
88 Salzbrq
F
71
75
Frankft
F
21
70 S'ciscot
F
11
52
Funchal
C
■22
72 S Mrftz
-
Geneva
F
74
75 Slnpapc
S
31
Gibrfrr
S
24
75 S’tieoot
Gl ag'ur
F
18
64 Stckhm
T
15
59
G many
F
17
83 Strsshg
F
25
77
Helsinki .
F
18
61 Sydney
S
17
ra
H Konq
R
26
79 Tangier
s
24
75
innsbrk
F
21
75 T el Aviv
s
27
81
Invrnss
C
IB
s
7*1
77
laMon
F
17
63[Tafcyo
c
"2*>
77
Inaofcul
F
24
TSjTr'nrot
s
18
84
Jersey
3
20
68;Tunis
s
40 104
Jo’burq
S
35
95’Valeneie
F
31
88
L Pima
S
23
73 Venice
F
2R
02
Lisbon
s
3S
79 j Vienna
F
23
73
Locarno
F
28
F
17
63
London
C
19
66 1 Zurich
F
29
77
C-— Cloudy.
F—
Fair. Fn—Foo. H— Hall.
R — Rain
_ S— Sunny Sl-'-Slym.
f Noon GMT temperatures.
NEWS
REVIEW
BUSINESS
Argus for
Health
Authority
Two further Ferranti Delphl-
Phoenix pathology laboratory
data handling systems, valued'
at over £250,000. have been
delivered by Ferranti Com-
puter Systems to fee Wessex
Regional Health Authority.
Based on Argus 700G com-
puters, the systems will
accept data from laboratory
instruments directly or
through microprocessor inter-
faces. An operator with no
computer knowledge has fast,
easy access to a powerful
diagnostic aid which will
store for recall patient in-
formation, snch as symptoms,
test results and medication.
Meet Maxivolt
Ferranti Electronics has intro-
duced Maxivolt, a family of
high voltage, high speed,
power switching transistors.
33 types are available in TO-3
and TO -220 packages up to
25 amps and 1,600- volts rat- '
ings for use in off-line switch-
ing power - supplies, con-
vertors, high voltage invertors
and switching regulators.
Briefly
TRW Ferranti Subsea has
supplied a hydraulic power
unit to Shell Expro for use
on a North Sea production
platform,
Ferranti Type 520 Laser
Rangers have been selected
to equip tanks recently
ordered by the Sultanate of
Oman Land Forces.
«4S™iS C ai n iht 01 lhl * Primary V"cJSK 'pr^ ^flnd d oTb^h«rt P h Qf f f n3 ? nr ol
Bracken. House. Cannon. Suwt. London EC4P «BY. . v - ant * »iv Urn. FkmpciaI T'flM }fi
v V . « rhn r-n>nr.iBl T.rrwi LllT, «
qp
Ferranti Navigation Systems FIST-L ■— Line Replaceable
V, 0 . dev £°P an* Unit testing system in pro-
SnhLij* T 5 5t Auction for RAF second-line
Equipment (ATE) systems for servicing.
iKe_KRAF (3rd ]ine) Depot FemnU lMrtlaI
t fnr , n ' - , , systems equip many RAF afr
M £ D including Tornado,
r^ P Harrier > Jaguar and Nimrod-
^ fegaal Sj^tem Pour Fer^ti ATEs hare -
will be produced at BellshiU, pcrf °[ S *£ '
Glasgow. FIST-P will enable ?® pects of testing required «
the RAF. to do its own aer- « CtUr % ^ n
and diagnostic JctrlS
- . . modules, electro-mechanical
■ IMTOUIDO, ClCkUU-llWCIllUUUU
The system will he . brought sub-assemblies and compoft-
into hue with the Ferranti ents.
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